Nanotech Inc leased a new machine having an expected useful life of 20 years from Union Co Terms of the noncancelable 15-year lease were that Nanotech would gain title to the property upon payment of a sum equal to the fair market value of the machine at the termination of the lease. Nanotech accounted for the lease as a capital lease and recorded an asset and a liability in the financial
records. The asset recorded under this lease should properly be amortized over
a. 5 years (the period of actual ownership).
b. 15 years (75 percent of the 20-year asset life).
c. 20 years (the total asset life).
d. 15 years (the term of the lease).
D
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Mergers of chapters within a federated organization are ______:
A. takeovers B. intermergers C. intramergers D. collaborations
The extent to which people are devoted to their organizations and families is ______.
A. in-group collectivism B. future orientation C. institutional collectivism D. humane orientation
Which of these statements about valuation models is NOT correct?
A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. C) If cash flows are not normal, IRR may arrive at multiple solutions. D) IRR is a more robust determinant of project viability than NPV.
Individual rationality ________ organizational rationality.
A. is often the opposite of B. is a good indicator of C. will ensure D. does not always guarantee