FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

The project has the following cash flows and salvage values and cost of capital 8%: Year 0 1 2 3 4 Cash flows -5000

The project has the following cash flows and salvage values and cost of capital 8%: Year 0 1 2 3 4 Cash flows

The project has the following cash flows and salvage values and cost of capital 8%: Year 0 1 2 3 4 Cash flows -5000 2500 3200 1600 1000 Salvage 4000 3500 1800 900 0 What are the physical life and the economic life for this project? A. Physical life of this project is 4 years with economic life of 2 years. B. Physical life of this project is 3 years with economic life of 4 years. OC. Physical life of this project is 4 years with economic life of 1 year. D. Physical life of this project is 4 years with economic life of 4 years. E. Physical life of this project is 4 years with economic life of 3 years.

Step by Step Solution

★★★★★

3.41 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below The correct answer is D Physical life o... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organic Chemistry
Organic Chemistry

Authors: L. G. Wade Jr.

8th edition

321768418, 978-0321768414

More Books

Students explore these related Finance questions

Question

Direct labor costs Family Model Deluxe Model $72,900 $145,800 Machine hours 2,000 2,000 Setup hours 200 800 Packaging hours 50 75 The estimated overhead of $437,400 is allocated as follows: machining...

Answered: 3 weeks ago

Question

From the adjusted trial balance above, prepare the financial statements of Coastal Carolina Corporation in good form (format will be graded as well as correctness): Multistep Income Statement...

Answered: 3 weeks ago

Question

21. DOES THE U.S DOLLAR INDEX WEAKEN IF THE US GROWTH ACCELERATES ? 22. THE U.S DOLLAR INDEX WEAKEN IF THE INTEREST RATE DIFFERENTIALS NARROW BETWEEN THOSE NATIONS ?

Answered: 3 weeks ago

Question

If you were a hedge fund manager, which style would you employ and why? Describe this style and how it works. Why would you utilize it and under what macroeconomic conditions would this style work...

Answered: 3 weeks ago

Question

Six moles of an ideal gas are in a cylinder fitted at one end with a movable piston. The initial temperature of the gas is 27.0C and the pressure is constant. As part of a machine design project,...

Answered: 3 weeks ago

Question

23. How do financial institutions help with risk-bearing?

Answered: 3 weeks ago

Question

1. Share examples of how you have improved your knowledge and skills, for example in writing, at a sport, or doing a craft.

Answered: 3 weeks ago

Question

How important was Ians knowledge of the billing procedures used within the steel industry in his being able to establish his business? Given his cash position when he opened his business, do you...

Answered: 3 weeks ago

Question

On December 31, 2020, Pronghorn Inc. has a machine with a book value of $1,259,600. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated...

Answered: 3 weeks ago

Question

Using either CHECKPOINT or INTELLICONNECT refer to the Holden Fuel Oil Company, RIA T.C. Memo 72,045 (T.C. Memo 1972-45), 31 TCM 184. a. In which year was the case decided? b. What controversy was...

Answered: 3 weeks ago

Question

Describe the advantages of using CAD software for designing the parts and producing the drawings that your company uses for manufacturing products compared to more traditional (drawingboard-based)...

Answered: 3 weeks ago

Question

Grocery Inc. (Grocery or the Company), an SEC registrant, is a wholesale grocery distributor and retailer in the United States. One of the Companys core businesses is distributing grocery products to...

Answered: 3 weeks ago

Question

Two identical springs hang from the ceiling, while a 4.0 kg block is attached to the end of the springs, as shown in the diagram. The spring constant is equal to: 0 20 40 60 80 2468 cm 4 kg

Answered: 3 weeks ago

Question

Required information [The following information applies to the questions displayed below.] Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow....

Answered: 3 weeks ago

Question

Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,000 cases at a budgeted price of $60...

Answered: 3 weeks ago

Question

Mesa Solutions needs 300 units of aluminum panels each week for its sign-making business. The carrying/holding cost per unit per year is $20 and the fixed ordering cost is $900. What is the optimal...

Answered: 3 weeks ago

Question

Champaign Inc, a company that provides educational consulting services to large universities across the nation, has a gross payroll of $64,000 for the pay period. The entire payroll is subject to...

Answered: 3 weeks ago

Question

Provide a draft/outline of legal research involving an indigenous Canadian woman charged with assault causing bodily harm under (Sec 267b) of the Criminal Code, where the crown wants a 12-month jail...

Answered: 3 weeks ago

Question

Predict the major products of the following reactions. (a) 1-methylcyclohexene + aqueous Hg(OAc)2 (b) The product from part (a), treated with NaBH4 (c) 4-chlorocycloheptene + Hg(OAc)2 in CH3OH (d)...

Answered: 3 weeks ago

Question

The structure of limonene appears in Problem 25-13. Predict the products formed when limonene reacts with the following reagents. In problem 25.13 (a) Excess HBr (b) Excess HBr, peroxides (c) Excess...

Answered: 3 weeks ago

Question

Predict the major products of the following reactions. (a) 2, 4-dinitrochlorobenzene + NaOCH3 (b) Phenol + tert-butyl chloride + AlCl3 (c) Nitrobenzene + fuming sulfuric acid (d) Nitrobenzene +...

Answered: 3 weeks ago

Question

20. What is a feature detectorpg78

Answered: 3 weeks ago

Question

10. Where does the optic nerve start and where does it endpg78

Answered: 3 weeks ago

Question

18. How could a researcher determine whether a given neuron in the visual cortex is simple or complexpg78

Answered: 3 weeks ago

Previous Question Next Question