E3-36,37,39,44

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Killian Corp. has a residual income of $30,000 on invested assets of $450,000. If the hurdle rate is 10%, what is the operating income? Multiple Choice $30,000 o o $3,000 $45,000 $75,000 The transfer pricing method that uses the price the company would charge external customers is the: Multiple Choice balanced Scorecard method. negotiation method. cost-based method. market price method. Fletcher Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $494,000, a 5-year life, and a salvage value of $169,000. If the accounting rate of return for the project is 10%, what is the annual increase in net cash flow? Ignore income taxes Multiple Choice O $49,400 O $65,000 O $114,400 O $15,600 You are saving for a car that costs $34,000 that you hope to purchase in eight years. How much will you need to deposit today in a savings account that earns 7%, compounded annually, to withdraw enough for the purchase? (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest whole dollar amount.) Multiple Choice $31,776 $58,419 O $31.620 O o $19,788