A marketer can influence exchange rates to create international pricing advantages
Indicate whether the statement is true or false
FALSE
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_________ innovation makes small and continuous improvements to an existing product.
a. Radical b. Revolutionary c. Incremental d. None of the above
Which of the following is NOT commonly cited as a reason why management needs to understand capital markets?
A) Issuing securities to acquire capital is an ongoing process. B) Active markets have developed for the trading of securities, management needs to understand how these markets impact the firm's constantly changing shareholder base. C) Capital markets evolve over time, so management needs to be aware of any new methods or new locations for issuing securities that may come available. D) All of the above are commonly cited reasons for understanding financial markets.
All but one of the following have been identified as factors responsible for stagnation of U.S. productivity. Which one is not a valid factor?
A. Declining work ethic B. Declining quality of raw materials used in production processes C. Increasing number of service workers D. Changing characteristics of work force
For Proposal 3, the tax effect on the sale of the existing asset results in ________. (See Table 11.2)
Table 11.2
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2019. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. New assets will be depreciated under the MACRS system rather than being fully expensed right away. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The firm's cost of capital is 15 percent.
A) $8,000 tax liability
B) $16,000 tax liability
C) $20,000 tax liability
D) $23,200 tax liability