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NEW QUESTION: 1
Whatney Co. is considering the acquisition of a new, more efficient press. The cost of the press is
$ 360,000, and the press has an estimated six-year life with zero salvage value. Whatney uses straightline
depreciation for both financial reporting and income tax reporting purposes and has a 40 percent
corporate income tax rate. In evaluating equipment acquisitions of this type, Whatney uses a goal of a
four-year payback period. To meet Whatney's desired payback period, the press must produce a
minimum annual before-tax, operating cash savings of:
A. $90,000
B. $110,000
C. $114,000
D. $150,000
Answer: B
Explanation:
Choice "b" is correct. $110,000 minimum annual before-tax operating cash savings.
Step 1: Determine the after-tax annual cash savings. The question provides the cash outflow and the
desired payback period (which is calculated using after-tax cash flows). The $90,000 annual after-tax
cash flows is calculated as follows:
Step 2: Determine the amount of the annual depreciation expense. Because the question asks for annual
before-tax cash savings, we will need to convert the $90,000 after-tax cash savings we calculated in Step
1 ,above, to a before-tax amount. The depreciation tax shield plays a role in the after-tax cash flows, so
the annual depreciation of $60,000 must be calculated, as follows:
Step 3: Use algebra to determine the before-tax cash savings. Before-tax cash savings is equal to the
after-tax cash savings plus the taxes paid. So:
Let B = annual before-tax operating cash savings $90,000 after tax cash savings + [(B $60,000
depreciation expense ) (.40 tax rate)] = B $90,000 + [(B $60,000) (.40)] = B $90,000 + [.40B $24,000] = B
$ 90,000 $24,000 = .60B $66,000 = .60B $110,000 = B = annual before-tax operating cash savings
NEW QUESTION: 2
A single organism of diatoms is rarely seen by the average person. Which statement would justify that conclusion?
A. The lifestyles of diatoms are very complex.
B. Diatoms are free-floating, so they travel too quickly.
C. Diatoms are found only in very deep waters.
D. Most people do not live near marine environments.
E. Diatoms can be seen only with a microscope.
Answer: E
NEW QUESTION: 3
What is required for the Embedded Cascade Shark function to work? (Select 3)
A. TCP port 61898 should be open between the Steelhead and the remote Cascade Pilot.
B. You must enable Cascade Shark on the Management Console TCP Dumps menu.
C. The optimization service needs to be restarted.
D. You must give the username Shark a password.
Answer: A,B,D
NEW QUESTION: 4
ペネトレーションテストを実行する際の主な課題は次のうちどれですか？
A. ビジネスケースの確立
B. 見つかった脆弱性の修正
C. コストの決定
D. カバレッジの深さを決定する
Answer: D