The Cost Basis of an asset is [what]

A company must install one of two systems to reduce costs.  Both systems have useful lives of 5 years and no salvage value.  The cash flows are summarized below. Year System A NCF, $ System C NCF, $ 0 −10,000 −13,500 1 3,000 3,000 2 3,000 3,500 3 3,000 4,000 4 3,000 4,500 5 3,000 5,000 IRR 15.2% 13.4% Assume the firm’s MARR is 12%.  Which project should be selected on the basis of the IRR criterion? [which]

A process engineer needs to purchase a welding machine for a new production line.  The machine costs $41,000 now, has a maintenance cost of $6,000 per year, and will last 7 years.  Any time after year 5 the machine will have a salvage value of $7,000.  The effective interest rate is 6% per year. What is the capital recovery cost of the machine?

To help pay for construction of a new energy-efficient production facility, a mattress manufacturer recently issue $300 million in bonds. The 10-year bonds sold at their face value of $10,000, with a coupon rate of 8% per year, payable quarterly.  An investor purchased one bond. How much money will the investor receive 3 months after purchasing the bond?  $[a] (round to zero decimal places) The investor plans to hold the bond to maturity. What annual rate of return will they realize?  [b]% (round to two decimal places)

A large fashion retailer recently issue $1.3 billion in bonds to help repay funds it had previously borrowed. When the bonds were sold, an enterprising investor purchased a 10-year, $10,000 bond at face value with a coupon rate of 8% per year, payable quarterly. How much money will the investor receive 3 months after purchasing the bond?  $[a] (round to zero decimal places) The investor plans to hold the bond to maturity. What annual rate of return will they realize?  [b]% (round to two decimal places)

The Book Value of an asset is [what]

The Market Value of an asset is [what]

The Units of Production method of book depreciation [what]

QID [q]. Masks Are Us, Inc., has a distribution center in Tempe, Arizona where the company receives bulk orders from suppliers’ factories and ships out products to retail customers. The company just invested $[p]. [y] years from now, the company expects to receive $[z]. What is the annual rate of return for this investment? (Answer as a percentage, round to one decimal place.)

The Salvage Value of an asset is [what]