A corporation purchased a machine for $65,000 four years ago. It had an estimated life of 10 years and an estimated salvage value of $8,000. The current BV of this machine is $33,000. If the current MVof the machine is $40,500 and the effective income tax rate is 22%, what is the after-tax investment value of the machine? Use the outsider viewpoint. Choose the correct answer below. OA. $42,150 OB. $31,620 OC. $40,500 OD. $38,850 OE. $33,460

A corporation purchased a machine for $65,000 four years ago. It had an estimated life of 10 years and an estimated salvage value of $8,000. The current BV of this machine is $33,000. If the current MVof the machine is $40,500 and the effective income tax rate is 22%, what is the after-tax investment value of the machine? Use the outsider viewpoint. Choose the correct answer below. OA. $42,150 OB. $31,620 OC. $40,500 OD. $38,850 OE. $33,460

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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