1. Index Laboratories is considering leasing a thermoplastic molder. The lease would require 7 beginning-of-the-year payments of $122,000 each. If Index capitalizes this lease for financial reporting purposes at a 12% rate, what asset amount will be reported initially on its balance sheet? a. $969,046 b. $623,625 c. $556,808 d. $854,000

2. In considering the payback method, __. a. it is a method of determining the financial exposure of a firm for a project b. it is a complicated but accurate capital budgeting method c. it is generally superior to the net present value method d. None of these are correct

3. The normal probability distribution is characterized by a __. a. bar chart b. logarithmic curve c. bell curve d. step graph