Consider a machine that costs $20,000 and has a ï¬ve-year useful – McqOptions

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1.	Consider a machine that costs $20,000 and has a ï¬ve-year useful life.At the end of the ï¬ve years, it can be sold for $4,000 after all tax adjustments have been factored in. If the ï¬rm could earn an after-tax revenue of $4,400 per year with this machine, should it be purchased at an interest rate of 10%? (All beneï¬ts and costs associated with the machine are accounted for in these ï¬gures.)
A.	-220.76
B.	-200
C.	-240
Answer» B. -200

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