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NEW QUESTION: 1

A. Option B
B. Option E
C. Option D
D. Option A
E. Option C
Answer: B,C

NEW QUESTION: 2
In order to increase production capacity, Gunning Industries is considering replacing an existing
production machine with a new technologically improved machine effective January 1, 1997. The
following information is being considered by Gunning Industries.
. The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would
cost an additional $30,000.
. The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit.
Incremental operating costs are comprised of $30 per unit in variable costs and total fixed costs of
$ 40,000 per year.
. The investment in the new machine will require an immediate increase in working capital of $35,000.
. Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new
machine has an estimated useful life of five years and zero salvage value.
. Gunning is subject to a 40 percent corporate income tax rate.
Gunning uses the net present value method to analyze investments and will employ the following factors
and rates.

The acquisition of the new production machine by Gunning Industries will contribute a discounted
net-oftax contribution margin of:
A. $242,624
B. $454,920
C. $303,280
D. $363,936
Answer: B
Explanation:
Choice "d" is correct. $454,920 discounted net-of-tax contribution margin.

Choices "a", "b", and "c" are incorrect based on the above Explanation:.

NEW QUESTION: 3
In which network location should an external DNS server be placed?
A. enterprise branch
B. campus data center
C. internet
D. remote access
Answer: C

NEW QUESTION: 4
DRAG DROP


Answer:
Explanation:

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