Question: Question 9 4 pts Burak and Associated Corporation is considering the purchase of a new machine for $75,000, installed. The machine has a tax life

Question 9 4 pts Burak and Associated Corporation is considering the purchase of a new machine for $75,000, installed. The machine has a tax life of 5 years. Under the new tax law, the machine is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The firm expects to operate the machine for 3 years and then to sell it for $19,500. If the marginal tax rate is 25%, what will the after-tax salvage value be when the machine is sold at the end of Year 3? $ 15,000 $ 14,625 $ 4,875 O $ 16,125 $ 21,500 Question 10 4 pts Regardless of the size of a bond's coupon payment and maturity date, a bond's price moves in the opposite direction from interest rate movements (e.g., if interest rates rise, bond prices fall). False True Question 9 4 pts Burak and Associated Corporation is considering the purchase of a new machine for $75,000, installed. The machine has a tax life of 5 years. Under the new tax law, the machine is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The firm expects to operate the machine for 3 years and then to sell it for $19,500. If the marginal tax rate is 25%, what will the after-tax salvage value be when the machine is sold at the end of Year 3? $ 15,000 $ 14,625 $ 4,875 O $ 16,125 $ 21,500 Question 10 4 pts Regardless of the size of a bond's coupon payment and maturity date, a bond's price moves in the opposite direction from interest rate movements (e.g., if interest rates rise, bond prices fall). False True
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