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. |