The total path standard deviation can be calculated as the square root of the sum of variances of the critical path
Indicate whether the statement is true or false
TRUE
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Because plant and equipment are reported as long-term assets on the balance sheet, they have no impact on net income for the period until they are sold
a. True b. False Indicate whether the statement is true or false
Shultz Business Systems is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. This is just one of many projects for the firm, so any losses can be used to offset gains on other firm projects. What is the project's expected NPV?
Project cost of capital (r)10.0% Net investment cost (depreciable basis)$200,000 Units sold50,000 Average price per unit, Year 1$25.00 Fixed op. cost excl. deprec. (constant)$150,000 Variable op. cost/unit, Year 1$20.20 Annual depreciation rate33.333% Expected inflation rate per year5.00% Tax rate25.0% A. $27,625 B. $29,079 C. $30,610 D. $32,140 E. $33,747
The premium that insurance companies charge does not cover the cost of expected losses only. The premium must also cover the cost of compensating agents and other costs of doing business
The amount added to the pure premium to cover these costs is called the A) expense loading. B) deductible. C) dividend. D) loss reserve.
Which of the following might be found on an income statement?
A) Wages and salaries B) Interest and dividends C) Income taxes paid D) Payroll taxes paid E) All of the above