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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. -$65,000
D. -$62,000
E. -$52,600
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
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A. matching route distinguishers
B. nonmatching route distinguishers
C. matching route target values
D. disable split horizon on PE2 and PE3
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Universal Containers maintains their service level agreements at the customer level only. How can a Consultant ensure agents can verify coverage?
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B. Create Milestones, set up Entitlement Process, display the related List on the Account Page Layout.
C. Set up Entitlement Process, set up Service Contracts, display the related List on the Contact page Layout.
D. Create Milestones, set up Entitlement Process, display the related List on the Work Order Page Layout.
Answer: B
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