your firm needs a computerized line borning machine which costs $80,000 and requires $

Question 3 (2 points) Your firm needs a computerized line-boring machine which costs $80,000 and requires $20,000 in maintenance for each year of its three-year life. After three years, the salvage value will be zero. The machine falls into the Class 10 equipment category (CCA rate 30%). Assume a tax rate of 34% and a discount rate of 10%. Compute the annual after-tax maintenance cost. $13,200 $12.250 Question 1 (1 point) Which of the following statements regarding operating leverage is correct? In order to calculate the degree of operating leverage all that is needed are variable costs and operating cash flows. All else the same, operating leverage will rise as output increases. All else the same, the degree of operating leverage rises as the price per unit is increased. It is generally easier to decrease operating leverage than it is to increase it. All else the same, firms with high operating leverage have higher total fixed costs