Data Inc purchased some fixed assets 4 years ago at a cost of 21650 and is

# Data inc purchased some fixed assets 4 years ago at a

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Data, Inc. purchased some fixed assets 4 years ago at a cost of \$21,650 and is selling them today at a price of \$4,500. The assets are classified as 5-year property for MACRS. The MACRS table values are 0.2000, 0.3200, 0.1920, 0.1152, 0.1152, and 0.0576 for Years 1 to 6, respectively. What is the current book value of these assets? \$6,309.19\$3,741.12 Correct\$1,247.04\$8,420.02\$4,016.67ExplanationBook valueYear 4 = \$21,650 × (1 – 0.2 – 0.32 – 0.192 – 0.1152) = \$3,741.12 Rita's Flowers is considering a 3-year project with a discount rate of 12 percent, a tax rate of 34 percent, and an initial cost of \$12,000 for fixed assets. The selling price is estimated at \$22 a unit based on variable costs per unit of \$6.20 and fixed costs of \$2,280. Depreciation is straight-line to zero over 3 years. What is the accounting breakeven point? Assume a project currently has a negative net present value. Which one of these expectations would indicate that the timing option for that project may have a positive value? The project's cash flow projections are expected to remain constant over time.Assuming the selling price is greater than the total cost per unit, the contribution margin must increase as
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