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NEW QUESTION: 1
Whatney Co. is considering the acquisition of a new, more efficient press. The cost of the press is
$ 360,000, and the press has an estimated six-year life with zero salvage value. Whatney uses straightline
depreciation for both financial reporting and income tax reporting purposes and has a 40 percent
corporate income tax rate. In evaluating equipment acquisitions of this type, Whatney uses a goal of a
four-year payback period. To meet Whatney's desired payback period, the press must produce a
minimum annual before-tax, operating cash savings of:
A. $114,000
B. $150,000
C. $90,000
D. $110,000
Answer: D
Explanation:
Choice "b" is correct. $110,000 minimum annual before-tax operating cash savings.
Step 1: Determine the after-tax annual cash savings. The question provides the cash outflow and the
desired payback period (which is calculated using after-tax cash flows). The $90,000 annual after-tax
cash flows is calculated as follows:
Step 2: Determine the amount of the annual depreciation expense. Because the question asks for annual
before-tax cash savings, we will need to convert the $90,000 after-tax cash savings we calculated in Step
1 ,above, to a before-tax amount. The depreciation tax shield plays a role in the after-tax cash flows, so
the annual depreciation of $60,000 must be calculated, as follows:
Step 3: Use algebra to determine the before-tax cash savings. Before-tax cash savings is equal to the
after-tax cash savings plus the taxes paid. So:
Let B = annual before-tax operating cash savings $90,000 after tax cash savings + [(B $60,000
depreciation expense ) (.40 tax rate)] = B $90,000 + [(B $60,000) (.40)] = B $90,000 + [.40B $24,000] = B
$ 90,000 $24,000 = .60B $66,000 = .60B $110,000 = B = annual before-tax operating cash savings
NEW QUESTION: 2
When seven managers are in a swarm cluster how would they be distributed across three datacenters or availability zones?
A. 4-2-1
B. 3-2-2
C. 5-1-1
D. 3-3-1
Answer: A
NEW QUESTION: 3
DNAC GUI以外の場所からネットワークをプログラムおよび監視する機能を提供するものは何ですか？
A. ASDM
B. API
C. desktop client
D. NetFlow
Answer: B