Author Question: AFB, Inc is considering replacing an old machine with a new one. Two months ago their chief ... (Read 516 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
AFB, Inc is considering replacing an old machine with a new one. Two months ago their chief
  engineer completed a training seminar on the new machine's operation and efficiency. The 3,000
  cost for this training session has already been paid.
 
  If the new machine is purchased, it would
  require 7,000 in installation and modification costs to make it suitable for operation in the factory.
  The old machine originally cost 80,000 five years ago and is being depreciated by 10,000 per year.
  The new machine will cost 100,000 before installation and modification. It will be depreciated by
  12,000 per year. The old machine can be sold today for 12,000. The marginal tax rate for the firm
  is 40. Compute the relevant initial outlay in this capital budgeting decision.
  A) 97,800 B) 90,800 C) 79,500 D) 87,800

Question 2

Preferred stockholders' rights come before those of bondholders.
 
  Indicate whether the statement is true or false


cdmart10

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

D

Answer to Question 2

FALSE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

For a complete list of videos, visit our video library