Question: URGENT Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2 0 1 9 . For each investment

URGENT Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2019. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. New assets will be depreciated under the MACRS system rather than being fully expensed right away. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on longminusterm capital gains. The firm's cost of capital is 15 percent.
______________________________________________________________________
1/1/2015
1/1/2018
*Not applicable
For Proposal3, the incremental depreciation expense for year 3 is________.(See Table11.2)
Question content area bottom
Part 1
A.
$50,850
B.
$47,850
C.
$21,000
D.
$42,000

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