Given identical data, the future value of annuity due is always greater than the future value of an ordinary annuity
Indicate whether the statement is true or false.
TRUE
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In testing the reasonableness of an account balance, if MUS sampling cannot be used because of its limitations, what is an alternative statistical method?
a. Attribute sampling. b. Classical variables sampling. c. Discovery sampling. d. All of the above.
The Fair Labor Standards Act puts limits on the type of work and hours of work of workers
under age 18. Indicate whether the statement is true or false
Which of the following statements is correct with regard to capacity and the product life cycle?
a. Capacity requirements are difficult to predict during the introductory stages of a product’s life cycle. b. Capacity needs to be reduced during the growth stages of a product’s life cycle. c. Capacity needs to be expanded during the decline stages of a product’s life cycle. d. Capacity needs to be maintained during the growth stages of a product’s life cycle.
Exhibit 7A.1 Gargoyle Unlimited is planning to issue a zero coupon bond to fund a project that will yield its first positive cash flow in 3 years. That cash flow will be sufficient to pay off the entire debt issue. The bond's par value will be $1000, it will mature in 3 years, and it will sell in the market for $785.00. The firm's marginal tax rate is 40.00%. Refer to Exhibit 7A.1. What is the nominal dollar value of the interest tax savings to the firm in the third year of the issue? Do not round your intermediate calculations.
A. $54.42 B. $45.12 C. $46.51 D. $36.28 E. $50.70