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

question 97

Multiple Choice

Table 11.2
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2004. 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 3, the cash flow pattern for the replacement project is ________. (See Table 11.2)

• A) a mixed stream and conventional
• B) a mixed stream and non-conventional
• C) an annuity and conventional
• D) an annuity and non-conventional

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Definitions:

Assault

A deliberate action taken by an individual that causes someone else to fear an immediate harmful or unpleasant interaction.

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A response or reaction that is elicited due to the actions or behavior of another; it often refers to being incited to anger or retaliation.

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The act of communicating false statements about a person that injure the reputation of that person.

Libel

A written defamation which unfairly tarnishes the reputation of a person or entity.