LaSalle Industries is considering the purchase of a new strapping machine, which will cost
$150,000, plus an additional $10,500 to ship and install.
The new machine will have a 5-year useful
life and will be depreciated to zero using the straight-line method. The machine is expected to
generate new sales of $45,000 per year and is expected to save $16,000 in labor and electrical
expenses over the next 5-years. The machine is expected to have a salvage value of $20,000.
LaSalle's income tax rate is 35%. What is the machine's IRR?
A) 15.75% B) 18.86% C) 20.03% D) 19.15%
D
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Consider Table 11.1. Concerning the Tuesday quotations: compared to the cost of buying 100 pounds on the spot market, if 100 pounds were bought for future delivery, then in 180 days the dollar cost of the pounds would be
a. $3.40 higher. b. $3.40 lower. c. $6.80 higher. d. $6.80 lower.
The United States and many Western countries use the form of law known as:
A) moral law B) theocratic law C) civil law D) common law
The gross profit ratio is computed by dividing net sales by gross profit
a. True b. False Indicate whether the statement is true or false
One of the potential dangers from outsourcing is the possible occurrence of low-ball pricing.
Answer the following statement true (T) or false (F)