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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 third year that Moore Corporation should use in a capital budgeting
analysis?
A. $47,400
B. $68,400
C. $53,700
D. $64,200
Answer: B
Explanation:
Choice "a" is correct. $68,400 net cash flow for the third year.
Alternate Computation:
In year 3, 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 BEFORE the
depreciation tax shield is considered. Depreciation is not a cash outflow, but it will reduce the amount of
tax the company has to pay (by 40% of the depreciation), and this has an effect on the cash-flow for the
company. Depreciation, as calculated above, is $21,000 per year ($105,000 cost of the machine divided
by 5 years). The depreciation tax shield is $8,400 ($21,000 * 40%), so the total after-tax cash flows in
year 3 for the new machine is $60,000 + $8,400 = $68,400.
NEW QUESTION: 2
A. Option C
B. Option D
C. Option B
D. Option A
Answer: C
NEW QUESTION: 3
In the environment of GRE configuration, which of the following statements are true? (Choose three.)
A. In order to make the ends of the tunnel forward data packets normally, the devices of both ends are configured routing which through the Tunnel interface
B. When the opposite end receives data packets, by identifying the protocol field value of IP header for GRE to determine whether send the data packet to GRE module for processing
C. When the local device send data packets, by identifying the protocol field value of IP header for GRE to determine whether send the data packet to GRE module for processing
D. If both ends enable the configuration of keyword verification, the keyword must be the same
Answer: A,B,D
NEW QUESTION: 4
You have an Azure SQL database named DB1 in the Each US 2 region.
You need to build a secondary geo-replicated copy of DB1 in the West US region on a new server.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
Explanation
Step 1: From the Geo-replication settings of DB1, select West US
The following steps create a new secondary database in a geo-replication partnership.
1. In the Azure portal, browse to the database that you want to set up for geo-replication.
2. (Step 1) On the SQL database page, select geo-replication, and then select the region to create the secondary database.
3. (Step 2-3) Select or configure the server and pricing tier for the secondary database.
Step 2: Create a target server and select a pricing tier
Step 3: On the secondary server, create logins that match the SIDs on the primary server.
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