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Table 11.2 Computer Disk Duplicators, Inc. Has Been Considering Several Capital Investment

question 100

Multiple Choice

Table 11.2
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2014. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The firm's cost of capital is 15 percent.
________________________________________________________ *Not applicable
-For Proposal 2, the book value of the existing asset at the end of the fifth year is ________. (See Table 11.2)

Know the implications of contracts involving competition restrictions.

Distinguish between different forms of contracts and the necessity of writing for enforceability.

Recognize the role of public policy in the validity of contracts.

Understand the evolution and historical context of the Statute of Frauds.

Definitions:

Sample Mean

The average of all the data points in a sample set from a population.

Squared Deviations

The squares of the differences between each value in a set and the mean of the set, used in various statistical computations including variance.

Standard Deviation

An indicator that evaluates the degree of scatter or inconsistency in a dataset in relation to its mean.

Salespersons

Individuals who are employed to sell products or services to customers, often working on commission.