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Question
ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $1,243,000 to purchase plus an additional $78,000 a year to operate. The machines have a five-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16.5 percent?
A) −$462,061.04
B) −$427,109.10
C) −$335,803.37
D) −$395,666.67
E) −$556,947.08
Answer
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Related questions
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B) general partnerships.
C) limited partnerships.
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Q:
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B) has an unlimited partnership life.
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D) limits each partner's personal liability to 25 percent of the partnership's total debt.
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Q:
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B) the partner's active participation in the firm's activities.
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D) the daily control over the business affairs of the partnership.
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Which one of the following statements concerning a sole proprietorship is correct?
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D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company.
Q:
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B) Should customers be given 30 or 45 days to pay for their credit purchases?
C) Should the firm borrow more money?
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E) How much cash should the firm keep on hand?
Q:
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B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
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A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.