Which of the following types of insurance does NOT involve a contract with an external party?

Accrued taxes and salaries payable are both sources of spontaneous financing

Indicate whether the statement is true or false

AFB, Inc is considering replacing an old machine with a new one. Two months ago their chief

engineer completed a training seminar on the new machine's operation and efficiency. The $3,000 cost for this training session has already been paid. If the new machine is purchased, it would require $7,000 in installation and modification costs to make it suitable for operation in the factory. The old machine originally cost $80,000 five years ago and is being depreciated by $10,000 per year. The new machine will cost $100,000 before installation and modification. It will be depreciated by $12,000 per year. The old machine can be sold today for $12,000. The marginal tax rate for the firm is 40%. Compute the relevant initial outlay in this capital budgeting decision. A) $97,800 B) $90,800 C) $79,500 D) $87,800