Blanshan Company Is Considering the Purchase of a Computer-Aided Manufacturing

question 21

Multiple Choice

Blanshan Company is considering the purchase of a computer-aided manufacturing system.The after-tax cash benefits/savings associated with the system are as follows:
- The system will cost $9,000,000 and will last ten years.The company's cost of capital is 12 percent.
Which of the following best describes the IRR for this project?

• A) between 8 and 10%
• B) between 10 and 12%
• C) between 12 and 14%
• D) between 14 and 16%

Ability to apply income division rules according to partnership agreements and activities.

Understand how net income is divided among partners based on capital, salaries, and predetermined ratios.

Knowledge of the allocation of net loss among partners.

Understand the principle of fair market value in the contribution of assets to a partnership.

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Definitions:

Subaverage Intellectual Functioning

Below average intellectual capability as demonstrated by an IQ typically under 70, and associated with difficulties in adaptive functioning.

Dominant Inheritance

A pattern of inheritance in genetics where an allele is expressed in the phenotype, even in the presence of a different allele.

Intellectual Disability

A state defined by notable restrictions in intellectual capabilities as well as in adaptive behavior, encompassing a broad range of daily social and practical abilities.

Fragile X Syndrome

A chromosomal abnormality characterized by a weakened or “fragile” site on the X chromosome.