The point at which the total cost line intersects with the total revenue line is the breakeven point
Indicate whether the statement is true or false
True
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Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last for 7 years. At the end of 7 years, the machine would have a salvage value of $51,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $72,000. The company requires a minimum pretax return of 18% on all investment projects. (Ignore income taxes.)Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.The present value of the annual cost savings of $72,000 is closest to:
A. $504,000 B. $274,464 C. $874,298 D. $22,608
Which of the following statements about valuing a firm using the compressed adjusted present value (CAPV) approach is most CORRECT?
A. The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the cost of debt. B. The horizon value is calculated by discounting the expected earnings at the WACC. C. The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the WACC. D. The horizon value must always be more than 20 years in the future. E. The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the levered cost of equity.
To raise $12 million to expand operations, Star Corporation makes a stock offering directly to sixty accredited investors and twenty sophisticated, but unaccredited investors. Star plans to notify the SEC of sales. Under the Securities Act of 1933, this issue may qualify as an "exempt" transaction
A. as is. B. if all of the investors are also given certain material information. C. if the offering is also made available to the general public. D. under no circumstances.
Inference rules and knowledge rules are both used to solve problems in a rule-based expert system
Indicate whether the statement is true or false