Based on the following information, please answer questions 16- 19 Mars Inc. is

Question

Based on the following information, please answer questions 16- 19

Mars Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually. Mars will use the MACRS accelerated method to depreciate the machine, and it expects to sell the machine at the end of its 5-year operating life for $10,000. The firm expects to be able to reduce net operating working capital by $15,000 when the machine is installed, but required net operating working capital will return to its original level when the machine is sold after 5 years. Mars

Explanation / Answer

16)b 17)a 18)d 19)a

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