If, at the end of the project life, a piece of equipment having a book value of $4,000 is expected to bring $3,000 upon resale, and the income tax rate is 40%, how much will be the cash flow?
A) $2,800
B) $3,000
C) $3,400
D) $4,000
C
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The greater the amount of time that passes after a price change, the
A) less elastic supply becomes. B) more elastic supply becomes. C) more negative supply becomes. D) steeper the supply curve becomes. E) None of the above answers is correct.
The intertemporal tradeoff between present and future consumption is measured by the
A) real interest rate. B) inflation rate. C) nominal interest rate. D) terms of trade. E) rate of economic growth.
Use the aggregate expenditures model and assume an economy is in equilibrium at $5 trillion which is $250 billion below full-employment GDP. If the marginal propensity to consume (MPC) is 0.60, full-employment GDP can be reached if government spending:
a. decreases by $60 billion. b. decreases by $100 billion. c. decreases by $250 billion. d. is held constant.
With the invention of banking, one important aspect of money was that
a. banks have some discretion over the money supply. b. banks have complete control over the money supply. c. governments lost all control over the money supply. d. individuals have no discretion over the money supply.