Planas Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$80,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$210,000 Annual cash operating expenses$150,000 One-time renovation expense in year 3$30,000 The company's income tax rate is 30% and its after-tax discount rate is 14%. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:
A. $18,000
B. $12,000
C. $9,000
D. $3,000
Answer: B
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Which of the following statements is true?
A. Different stock indexes normally show the same total returns. B. Stock indexes do not provide information on dividends. C. Mutual funds encourage investors to invest in the same security instead of diversifying. D. The S&P 500 is an example of a mutual fund.
An employee from Hamid's Automobile Inc. called up Horner's home to repair the latter's car. It was repaired in Horner's garage. When Horner defaulted on the bill, Hamid's employee went to his house to take possession of the car, claiming that the corporation had a lien on the car by virtue of the work performed on it. According to this scenario, which of the following statements is true?
A. The corporation has no lien on the car because the employee did not notify Horner at the time of the repairs that a lien would be claimed. B. The employee is entitled to the possession of the car because he was the one who performed the repairs on the car. C. Hamid's employee is justified in his actions as the corporation did have a lien on the car by virtue of the work performed on it by its employee. D. The corporation has no lien on the car, because its employee came to Horner's house to make the repairs and so Horner never gave up possession of his car to Hamid's.
An unfavorable volume variance may be due to a failure of supervisors to maintain an even flow of work
Indicate whether the statement is true or false
________ constrain data values and the processing of the database
Fill in the blank(s) with correct word