Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years?

Question:

Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years?

A.

12000

B.

9000

C.

10000

D.

11000

Answer» c. 10000

Note: The above multiple-choice question is for all general and Competitive Exams in India