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NEW QUESTION: 1
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. $363,936
C. $454,920
D. $303,280
Answer: C
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: 2
Which two statements about the OSPF Router ID are true? (Choose two.)
A. It is created using the MAC Address of the loopback interface.
B. By default, the lowest IP address on the router becomes the OSPF Router ID.
C. The router automatically chooses the IP address of a loopback as the OSPF Router I
D. It should be the same on all routers in an OSPF routing instance.
E. It identifies the source of a Type 1 LS
Answer: C,E
Explanation:
r120#show ip ospf data OSPF Router with ID (10.0.0.120) (Process ID 1) Next, who are the other routers in our area? Router Link States (Area 1) Link IDADV RouterAgeSeq#ChecksumLink count 10.0.0.11110.0.0.1116000x8000023A0x0092B31 10.0.0.11210.0.0.11212460x800002340x009CAC1 10.0.0.11310.0.0.1131480x8000022C0x0043993 10.0.0.12010.0.0.1201520x800002400x0046CB1
We can see OSPF Router ID will beused as source of Type 1 LSA.Also the router will chose the highest loopback interface as its OSPF router ID (if available).
NEW QUESTION: 3
DRAG DROP
Click the Task button.
Answer:
Explanation:
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