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pany is considering purchasing a new machine for $600,000 that will increase the firm's net me by $150,000 per year over the next 5 years.

pany is considering purchasing a new machine for $600,000 that will increase the firm's net me by $150,000 per year over the next 5 years. If the company wishes to obtain a 8% return on its vestment, the minimum salvage value of the machine at the end of the 5-year useful life should be closest to: a) $19,598 b) $19,609 c) $75,073 d) $1,609 e) $38,341 16-An asset is expected to produce a net cash inflow of $70000 per year for the next 5 years. if the operating expenses is $30000 per year and the depreciation value is $10000 per year. If the effective income tax rate is 17%. Then, the income taxes in one year is a) $4500 b) $5100 c) $10500 d) $16500 e) $5700 17-Assume you invest 110,000$ in a bank at an interest rate of 6% per year. You would like to receive (X S) every year and continuing forever, and (7X S) every five years continuing forever. Determine the value of X. a) $2,944.1 b) $3,211.7 c) $2,676.4 d) $2,906.4 e) $3,452.3 18- What is the Capitalized Worth, when i = 10% per year, of $3000 per year, starting in one year and continuing forever, and $5,000 at the end of fourth year, repeating every five years thereafter, and continuing forever. a) $4,4009 b) $5,9009 c) $3,9009 d) $3,4009 e) $5,4003 19-If you have this offer "you will invest $200 per month for the first 45-months, where the first payment at the end of the first month. After that, you will receive $10,000 cash at the end of month 48. Which of the following equations to calculate the IRR for this offer is False? a) $10,000 (P/F. 1%, 48) (A/P, i %, 45)-$200 b) $200 (F/A, i%, 45) (F/P, i%, 3)-$10,000 c) $10,000 (P/F, %, 48) (A/P, 1%, 3)-$200 d) $200 (P/A, 1%, 45) (F/P. %, 48)-$10,000

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