Question 5 1 pts (PILO2)Precision Dyes is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14 percent and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has a cost of $512,000, annual operating cash outflows of $34,200, and a four-year life. Machine B costs $798,000, has annual operating cash outflows of $21.500, and has a six-year life. Whichever machine is purchased will be replaced at the end of its useful life. The firm should purchase Machine because it lowers the firm's annual costs by approximately as compared to the other machine. B: $17.521 OB: $16,791 A: $16,791 B; $17,404 A: $17.404 ULTRA FAST HZ GAMING DISPLAY Not change Increase 1 pts Question 7 You borrow $5,830 to buy a car. The terms of the loan call for monthly payments for 6 years and a monthly rate of interest of 0.583 percent. What is the amount of each payment? $93.21 $99.38 $64.61 $65.39 7 ULTRA FAST HZ GAMING DISPLAY Amount of tax that is due when an asset 13 Solu 1 Question 9 From the balance sheets of Just Dew It Corporation for 2008 and 2009, calculate Debt-Equity Ratio and Equity multiplier in 2009 2008 2009 Total Asset 422.300 448,750 Owner's Equity 240,050 273,550 Long-term Debt 64,000 64,700 2. ULTRA FAST HZ GAMING DISPLAY $91.49 Question 8 The depreciation tax shield is best defined as the: Amount of tax that is saved when an asset is purchased Amount by which the after-tax depreciation expense lowers net income. Amount of tax that is saved because of the depreciation expense. Tax that is avoided when an asset is sold as salvage. Amount of tax that is due when an asset is sold. HZ ULTRA FAST