1. 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%