Julio Company purchased a $360,000 machine that has a six-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 20% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be

Multiple Choice

$(360,000).

$(288,000).

$(48,000).

$12,000.

$60,000.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & & & & Future & Value of $1 & & & & \\ \hline Periods & 4% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline 1 & 1.040 & 1.060 & 1.080 & 1.100 & 1.120 & 1.140 & 1.160 & 1.180 & 1.200 \\ \hline 2 & 1.082 & 1.124 & 1.166 & 1.210 & 1.254 & 1.300 & 1.346 & 1.393 & 1.440 \\ \hline 3 & 1.125 & 1.191 & 1.260 & 1.331 & 1.405 & 1.482 & 1.561 & 1.643 & 1.728 \\ \hline 4 & 1.170 & 1.263 & 1.361 & 1.464 & 1.574 & 1.689 & 1.811 & 1.939 & 2.074 \\ \hline 5 & 1.217 & 1.338 & 1.469 & 1.611 & 1.762 & 1.925 & 2.101 & 2.288 & 2.488 \\ \hline 6 & 1.265 & 1.419 & 1.587 & 1.772 & 1.974 & 2.195 & 2.437 & 2.700 & 2.986 \\ \hline 7 & 1.316 & 1.504 & 1.714 & 1.949 & 2.211 & 2.502 & 2.827 & 3.186 & 3.583 \\ \hline 8 & 1.369 & 1.594 & 1.851 & 2.144 & 2.476 & 2.853 & 3.279 & 3.759 & 4.300 \\ \hline 9 & 1.423 & 1.690 & 1.999 & 2.359 & 2.773 & 3.252 & 3.803 & 4.436 & 5.160 \\ \hline 10 & 1.480 & 1.791 & 2.159 & 2.594 & 3.106 & 3.707 & 4.412 & 5.234 & 6.192 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ Present Value of $1} \\ \hline Periods & 4% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline 1 & 0.962 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ \hline 2 & 0.925 & 0.890 & 0.857 & 0.826 & 0.797 & 0.769 & 0.743 & 0.718 & 0.694 \\ \hline 3 & 0.889 & 0.840 & 0.794 & 0.751 & 0.712 & 0.675 & 0.641 & 0.609 & 0.579 \\ \hline 4 & 0.855 & 0.792 & 0.735 & 0.683 & 0.636 & 0.592 & 0.552 & 0.516 & 0.482 \\ \hline 5 & 0.822 & 0.747 & 0.681 & 0.621 & 0.567 & 0.519 & 0.476 & 0.437 & 0.402 \\ \hline 6 & 0.790 & 0.705 & 0.630 & 0.564 & 0.507 & 0.456 & 0.410 & 0.370 & 0.335 \\ \hline 7 & 0.760 & 0.665 & 0.583 & 0.513 & 0.452 & 0.400 & 0.354 & 0.314 & 0.279 \\ \hline 8 & 0.731 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 & 0.305 & 0.266 & 0.233 \\ \hline 9 & 0.703 & 0.592 & 0.500 & 0.424 & 0.361 & 0.308 & 0.263 & 0.225 & 0.194 \\ \hline 10 & 0.676 & 0.558 & 0.463 & 0.386 & 0.322 & 0.270 & 0.227 & 0.191 & 0.162 \\ \hline \end{tabular} \begin{tabular}{cccccccccc} & \multicolumn{7}{c}{ Present Value of a Series of $1 Cash Flows } \\ Periods & 4% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline 1 & 0.962 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ 2 & 1.886 & 1.833 & 1.783 & 1.736 & 1.690 & 1.647 & 1.605 & 1.566 & 1.528 \\ 3 & 2.775 & 2.673 & 2.577 & 2.487 & 2.402 & 2.322 & 2.246 & 2.174 & 2.106 \\ 4 & 3.630 & 3.465 & 3.312 & 3.170 & 3.037 & 2.914 & 2.798 & 2.690 & 2.589 \\ 5 & 4.452 & 4.212 & 3.993 & 3.791 & 3.605 & 3.433 & 3.274 & 3.127 & 2.991 \\ 6 & 5.242 & 4.917 & 4.623 & 4.355 & 4.111 & 3.889 & 3.685 & 3.498 & 3.326 \\ 7 & 6.002 & 5.582 & 5.206 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 \\ 8 & 6.733 & 6.210 & 5.747 & 5.335 & 4.968 & 4.639 & 4.344 & 4.078 & 3.837 \\ 9 & 7.435 & 6.802 & 6.247 & 5.759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 \\ 10 & 8.111 & 7.360 & 6.710 & 6.145 & 5.650 & 5.216 & 4.833 & 4.494 & 4.192 \end{tabular}