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NEW QUESTION: 1
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck. The truck's basic price is $50,000, and it will cost another $10,000 to modify it for special use by your firm. The truck falls into the MACRS three-year class, and it will be sold after three years for $20,000. Use of the truck will require an increase in net working capital (spare parts inventory) of
$2,000. The truck will have no effect on revenues, but it is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent. What is the net investment in the truck?
A. -$50,000
B. -$55,800
C. -$52,600
D. -$62,000
E. -$65,000
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Initial investment:
Cost($50,000)
Modification(10,000)
Change in NWC(2,000)
Total net investment =($62,000)
NEW QUESTION: 2
Refer to the exhibit. You are designing an IPv4 unicast Layer 3 VPN load-balancing solution. Which L3VPN feature needs to be configured on the PE routers to support the design requirement?
A. matching route distinguishers
B. nonmatching route distinguishers
C. matching route target values
D. disable split horizon on PE2 and PE3
Answer: B
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