quiz 4 - View Results Quiz 4: Chapters 11, 14, & 16...

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View Results Name: Hussein Bzeih Attempt: 1 / 1 Out of: 15 Started: April 26, 2010 7:40pm Finished: April 26, 2010 9:01pm Time spent: 1 hr, 20 min., 21 sec. Student exceeded allotted time of 80 min. by 0 min. 21 sec. . Question 1 (3 points) Similar to HW # 11.10 p. 412 in Blank 6th edition An asset with first cost of $100,000 is expected to have a maximum useful life of 4 years and an estimated future market value of $50,000 that decreases $5,000 each year thereafter. The annual operating cost is expected to be $40,000 the first year, $50,000 the second year, and amounts increasing by $10,000 each year thereafter. The interest rate for this company, called Public Services Corp., is 15% per year. An ESL analysis based on AW computations is made. Student response: Percent Value Correct Response Student Response Answer Choices 0.0% a. The correct equation for AW1 is: -100,000 (P/A, 15%,1) – 40,000 + 50,000 (A/F, 15%,1) 0.0% b . The correct equation for AW2 is: -100,000 (A/P, 15%,2) – [40,000(P/F,15%,1) + 10,000 (A/G, 15%,2)] + 45,000 (F/A, 15%,2) 100.0% c. TOTAL AW1 < a cost of $203,000 0.0% d . TOTAL AW2 = - $80,204 Score: 3 / 3 Question 2 (2 points) Similar to HW # 11.14 p. 413 in Blank 6th edition Determine the economic service life and corresponding AW for a machine that has the following cash flow estimates. For
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quiz 4 - View Results Quiz 4: Chapters 11, 14, &amp; 16...

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