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11) Benton Auto Products, Inc. is considering the purchase of a new CNC system. This system will replace an existing system that can be sold
11) Benton Auto Products, Inc. is considering the purchase of a new CNC system. This system will replace an existing system that can be sold for $2,500. The existing system is 5 years old, cost $12,500, had a 7-year useful the after-tax salvage value (i.e., terminal cash flow) of the old system? life, and is being depreciated to zero using the straight-line method. BAP's income tax rate is 28 percent. What is A) $2,500 E) $1,900 B) $3,100 D) $2,800 C) $2,200 2
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