You are considering investing in a piece of equipment to implement a cost-cutting proposal. The pre-tax cost reduction is expected to equal $41.67 for each of the three years of the project's life. The equipment has an initial cost of $125 and belongs in a 20% CCA class. Assume a 34% tax bracket, a discount rate of 15%, and a salvage value of zero. If the equipment is sold to another company at the end of year 3 for $20, what is the NPV?
Kit hires Lane to obtain insurance for Kit's business. Lane agrees to act on Kit's behalf in the effort, and Kit trusts Lane to so act. Their relationship is
A) an employee and an agent. B) none of the choices. C) a broker and an independent contractor. D) a principal and an agent.
A city police chief decides to do an annual review of the police department by checking the number of monthly complaints. If the total number of complaints in each of the 12 months were 15, 18, 13, 12, 16, 20, 5, 10, 9, 11, 8, and 3 and the police chief wants a 90% confidence level, are the complaints in control?
From Table S6.2 in the text, z = 1.65 c-bar = (15 + 18 + 13 + 12 + 16 + 20 + 5 + 10 + 9 + 11 + 8 + 3)/12 = 11.67 complaints UCL = 11.67 + 1.65 (v 11.67) = 17.307 complaints LCL = 11.67 - 1.65 (v11.67) = 6.033 complaints Since the points 18 and 20 fall above the UCL and points 5 and 3 fall below the LCL, the complaints are not in control.
JH
Answered
Gross profit rate is computed by dividing cost of goods sold by net sales.