Independent projects are projects that if accepted or rejected, do NOT affect the cash flows of other projects
Indicate whether the statement is true or false
true
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Answer the questions below.
a.You buy a government bond that pays interest twice a year. The interest payment is $300 each six months. The bond matures in six years. The face value of the bond is $10,000. The annual market interest rate is 6 percent. What is the present value of the bond? Show your work. A formula that may be useful to you is: 
. b.After six months go by, you receive the first interest payment of $300. The annual market interest rate has declined to 5 percent and you decide to sell the bond. What is the bond's present value when you sell it? Show your work. c.What is your total return from owning the bond for six months (expressed at an annual rate, in percentage points, with two decimals)? Show your work.
What will be an ideal response?
Which of the following is not a base against which profits are measured?
a. Owners' equity b. Owners' and creditors' funds provided c. Intangibles d. Revenues e. Productive assets
Over time, most contracts are:
A) Executory at one time and executed at another time. B) Implied at one time and express at another time. C) Bilateral at one time and unilateral at another time. D) Valid at one time and void at another time.
On January 1, Year 1, City Taxi Company purchased a new taxi cab for $81,000. The cab has an expected salvage value of $3500. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 63,000 miles the first year and 93,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.)
A. $37,665 and $17,820 B. $22,785 and $42,780 C. $37,665 and $14,320 D. $21,320 and $39,280