The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $270,000 to install the coffee machines, and they are expected to boost cash flows by $120,536 per year for their five-year working life
What must the cost of capital be if this investment has a profitability index of 1?
A) 1.89%
B) 3.78%
C) 7.55%
D) 9.44%
Answer: B
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On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of equity as of May 31 of the current year?
A. $49,700. B. $31,100. C. $40,400. D. $13,050. E. $20,500.
Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration
a. True b. False Indicate whether the statement is true or false
Each state permits a debtor to retain the family home, in its entirety or in part, free from the claims of unsecured creditors.
Answer the following statement true (T) or false (F)
Other things held constant, a decline in sales accompanied by an increase in financial leverage must result in a lower profit margin.
Answer the following statement true (T) or false (F)