What is the present value of an annual payment of $3,600 discounted back 12 years at an annual rate of return of 5 percent?
A) $12,977.19
B) $31,907.71
C) $45,360.00
D) $57,301.66
Answer: B
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A specialized piece of equipment closely associated with a mine is most likely to be depreciated over a shorter than normal useful life because the
a. equipment will be fully utilized. b. income tax laws require that a shorter life be used. c. equipment contains certain defects. d. mine is expected to be fully depleted in the shorter length of time.
Reverse engineering is used in
a. statistical process control. b. process benchmarking. c. results benchmarking. d. price fixing.
Costs that vary in total in direct proportion to changes in an activity level are called:
A) fixed costs B) sunk costs C) variable costs D) differential costs
A noncash investing activity should be disclosed in a note to the statement of cash flows or on a separate schedule.
Answer the following statement true (T) or false (F)