What is the annual cost incurred at the end of the first year?
A) $463,454,784
B) $324,000,000
C) $554,291,922
D) $387,504,000
B
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Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day
Which of the following factors led to Brenda's customer switching behavior? A) inconvenience B) pricing C) response to service failure D) ethical problems E) involuntary switching
According to the text, why is the accounts receivable turnover ratio widely used in analyzing revenue-related fraud?
a. Significant amounts of fictitious revenues and receivables will almost always affect this ratio except in rare cases. b. Adding fictitious receivables will generally decrease the number of days it takes to collect receivables. c. If the ratio generally exceeds 1, recording fictitious sales will significantly increase the ratio, making it easy to spot fraud. d. Since the ratio should ideally equal to 1, any deviation from this number is easy to detect.
Suggesting what to do about the information gathered is done through which of the following?
A) Summary B) Data manipulation C) Conclusion D) Paraphrasing E) Recommendation
Carmichael Cleaners needs a new steam finishing machine that costs $100,000. The company is evaluating whether it should lease or purchase the machine. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new facility at that time. The estimated value of the equipment after 3 years is $30,000. A maintenance contract on the equipment would cost $3,000 per year, payable at the beginning of each year. Alternatively, the firm could lease the equipment for 3 years for a lease payment of $29,000 per year, payable at the beginning of each year. The lease would include maintenance. Due to special circumstances, the firm is in the 20% tax bracket, and it could obtain a 3-year simple interest loan, interest payable at
the end of the year, to purchase the equipment at a before-tax cost of 10%. If there is a positive Net Advantage to Leasing the firm will lease the equipment. Otherwise, it will buy it. What is the NAL? (Note: Assume MACRS rates for Years 1 to 4 are 0.3333, 0.4445, 0.1481, and 0.0741.) A. $5,734 B. $6,023 C. $6,324 D. $6,640 E. $6,972