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NEW QUESTION: 1
The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased
for $90,000; it will cost $6,000 to transport to Moore's plant and $9,000 to install. It is estimated that the
machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its
1 0-year life, the machine is expected to produce 2,000 units per year with a selling price of $500 and
combined material and labor costs of $450 per unit. Federal tax regulations permit machines of this type
to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has
a marginal tax rate of 40 percent.
What is the net cash outflow at the beginning of the first year that Moore Corporation should use in a
capital budgeting analysis?
Choice "d" is correct. $(105,000) net cash outflow at the beginning of the first year.
NEW QUESTION: 2
Which two IT solution characteristics do small and midsize business customers prefer? (Choose two)
A. flexibility; devices can be added easily in the future
B. enterprise-grade functionality; complexity is not a concern
C. solutions that will increase employee morale
D. simple devices that work well together right out of the box
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