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Tommy Inc. uses machines to manufacture windows. One machine initially costs $142,000 and will last 5 years before it needs to be replaced. The operating
- Tommy Inc. uses machines to manufacture windows. One machine initially costs $142,000 and will last 5 years before it needs to be replaced. The operating cost per machine per year is $7,000. What is the equivalent annual cost of one machine if the required rate of return is 11%?
A. $30,811 B. $33,574 C. $35,400 D. $37,267 E. $45,421
2. Emily is working on a project and sent a letter inquiring about the cost of a piece of equipment. The cost of the stamp to mail this letter is an example of a(n) _____ cost. A. Opportunity B. Relevant C. Erosion D. Sunk E. Incremental
3. The current price of Apple stock is $51. Dividends are expected to grow at 7% indefinitely and the most recent dividend was $1. What is the required rate of return on Apple stock?A. 9.0%
B. 9.1%.
C. 9.3%
D. 10.6%.
E. 11.2%
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