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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 flow for the tenth year of the project that Moore Corporation should use in a capital
budgeting analysis?
A. $81,000
B. $68,400
C. $60,000
D. $63,000
Answer: D
Explanation:
Choice "c" is correct. $63,000 net cash flow for the tenth year.

Alternate Computation:
In year 10, Moore will generate a $100,000 profit from the incremental sales (2000 units * ($500 -$450)).
This profit will be taxed at 40%, so the net after-tax increase in cash flow is $60,000. The machine is fully
depreciated in year 10 because it was depreciated over a 5-year life. The tax basis of the machine is zero
on the date Moore receives a $5,000 salvage value for the machine. The gain on the machine of $5,000
($5,000 SV $0 Basis) is taxed at 40%, or $2,000 in total tax outflow for the gain, so the net inflows on the
salvage is $3,000. Therefore, the total after-tax cash flows in year 10 for the new machine is $60,000 +
$ 3,000 = $63,000.

NEW QUESTION: 2
현재의 ERP 소프트웨어 ERP II)는 다음과 같은 고급 계획 및 스케줄링 시스템을 포함 할 수 있습니다.
A. 고객의 주문 추적을 허용합니다.
B. 공급망을 통한 제조업체의 재료 및 구성 요소 흐름을 제어합니다.
C. 소매점의 위치를 결정합니다.
D. 조직을 합작 투자의 다른 구성원과 연결합니다.
Answer: B
Explanation:
An advanced planning and scheduling system may be an element of a supply chain management application for a manufacturer. It controls the flow of materials and components within the chain. Schedules are created given projected costs, lead times, and inventories.


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