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A New Machine Is Expected to Produce a MACRS Deduction

Question 109

Multiple Choice

A new machine is expected to produce a MACRS deduction in three years of $50,000.
A new machine is expected to produce a MACRS deduction in three years of $50,000. If the company has a 12% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow to include in an acquisition analysis would be: A) $0. B) $10,680. C) $24,920. D) $46,280. E) None of the other answers is correct.
If the company has a 12% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow to include in an acquisition analysis would be:


A) $0.
B) $10,680.
C) $24,920.
D) $46,280.
E) None of the other answers is correct.

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