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NEW QUESTION: 1
McLean Inc. is considering the purchase of a new machine that will cost $150,000. The machine has an
estimated useful life of three years. Assume for simplicity that the equipment will be fully depreciated 30,
4 0, and 30 percent in each of the three years, respectively. The new machine will have a $10,000 resale
value at the end of its estimated useful life. The machine is expected to save the company $85,000 per
year in operating expenses. McLean uses a 40 percent estimated income tax rate and a 16 percent hurdle
rate to evaluate capital projects.
Discount rates for a 16 percent rate are as follows: The payback period for this investment would be:
A. 2.94 years
B. 2.09 years
C. 1.76 years
D. 2.95 years
Answer: B
Explanation:
Choice "c" is correct. 2.09 years payback period.
At the beginning of year 3, $6,000 is needed to recover the investment. Because an inflow of $69,000 is
expected throughout the year, only 6,000 / 69,000 = .09 years is needed to recover the $6,000. Thus, the
payback is 2.09 years. The $6,000 in salvage is excluded from the totals for year 3. Amounts are not
realized until the end of the year while savings and depreciation tax shield occur throughout the year and
are relevant to the partial year payback.
NEW QUESTION: 2
The paper manufacturer you buy paper from works with The Forest Stewardship Council. What does this mean?
A. 100% of the paper's content is recycled.
B. 50% of the paper's content is recycled.
C. The paper is only made of new fiber from trees.
D. The paper aligns with responsible forest use.
Answer: D
NEW QUESTION: 3
This sample code is vulnerable to which of the following attacks? Select all that apply.
A. Short Address
B. Unchecked Return Values
C. Reentrancy
D. Arithmetic
Answer: A
NEW QUESTION: 4
Which of the following devices is primarily intended to provide 24/7 diagnostic and biometric data regarding the user?
A. Fitness monitor
B. e-Reader
C. Smartwatch
D. Smartphone
Answer: A