The method of depreciation (straight line versus accelerated…
The method of depreciation (straight line versus accelerated) used for long-term fixed assets is important in cash flow valuation because accelerated depreciation produces higher total after-tax cash flows for the entire life of the asset.
Read DetailsA client has asked your advice on the acquisition of equipme…
A client has asked your advice on the acquisition of equipment for a new business endeavor. Alternative A costs $1,200,000 and has annual maintenance expenses of $60,000. Alternative B is a more advanced machine costing $1,700,000. This machine will have maintenance expenses of $40,000 per year and will also lower production costs by $80,000 per year. Both machines have a 5-year life, straight-line depreciation and zero salvage value. The company’s cost of capital is 10% and tax rate is 35%. Which machine should the client purchase and how much more value is added by choosing this alternative? (i.e. what is the difference in NPV between the two alternatives).
Read DetailsAfter increasing the inspiratory flow of the ventilator to d…
After increasing the inspiratory flow of the ventilator to decrease the generation of NO2 the therapist notices many changes in the ventilator parameters. The therapist adds the NO into the inspiratory limb of the ventilator circuit close to the patient. What will be a limitation of the procedure?
Read DetailsThe therapist taking care of an infant on iNO observes that…
The therapist taking care of an infant on iNO observes that the NO2 levels have been increasing. In order to correct the situation he increases the inspiratory flow of the ventilator. What will be some of the limitations associated with this change? I. It reduces time of contact between NO and O2.II. It affects the mean airway pressure because it changes the inspiratory time.III. It may increase the delivered tidal volume.IV. It reduces the mean airway pressure and increases the inspiratory time.
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