Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,663, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $83,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):Use Exhibit 13B-1 and Exhibit 13B-2 above to determine the appropriate discount factor(s).
A. 19%
B. 14%
C. 22%
D. 16%
Answer: C
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Answer the following statements true (T) or false (F)
The SEC requires disclose of both retrospective and prospective information in the Management’s Discussion and Analysis section of the annual report.
A budget that allows the determination of expected costs for various levels of activity is a(n)
A) operational budget. B) capital budget. C) static budget. D) flexible budget. E) cash budget.
With regard to using memos or e-mails for business communication, writers should use the indirect approach when they are:
A. asking for information. B. communicating messages that contain bad news. C. sending reminders about deadlines and important meetings. D. telling readers about an accompanying message.
Phil invents "PhutureNow," new Web site design software, and applies for a patent. If Phil is granted a patent, his invention will be protected
A. for ten years. B. for twenty years. C. for the life of the inventor plus seventy years. D. forever.