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NEW QUESTION: 1
The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer.
The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the net investment required at t = 0?
A. -$38,600
B. -$36,600
C. -$37,600
D. -$40,000
E. -$42,000
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Initial investment:
Cost($40,000)
Change in NWC(2,000)
($42,000)

NEW QUESTION: 2
The Supreme Court decision that holds that no suspect, in a custodial environment, may be asked any questions until he or she has first been warned that he or she need not make any statement and advised of certain other rights is the:
A. Ennis decision
B. Miranda decision
C. McNabb decision
D. Terry decision
E. Mallory decision
Answer: B

NEW QUESTION: 3
The ___________ would not be considered a stakeholder in a design.
A. data center manager
B. backup administrator
C. key application owners
D. project sponsor
Answer: B
Explanation:
Key stakeholders should include the following: Project sponsor
Key application owners Server architecture leads LAN/WAN architecture leads Data center managers

NEW QUESTION: 4
Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.
The Canadian government's program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?
A. Wheat production in several countries declined the year that the compensation program went into effect in Canada.
B. Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.
C. If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.
D. The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farms.
E. The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The program will not be a net burden on the budget because money spent on compensation can be made up by money collected through taxation of the farms.