Author Question: A direct quote of 1.6 per British pound in the United States is equivalent to a direct quote of .625 ... (Read 126 times)

jlmhmf · **on:** Jul 10, 2018

A direct quote of 1.6 per British pound in the United States is equivalent to a direct quote of .625
British pounds per U.S. dollar in Great Britain.

Indicate whether the statement is true or false

Question 2

Propell Inc is considering the purchase of a new machine that will cost 178,000, plus an additional
12,000 to ship and install. The new machine will have a 5-year useful life and will be depreciated
using the straight-line method.

The machine is expected to generate new sales of 85,000 per year
and is expected to increase operating costs by 10,000 annually. Propell's income tax rate is 40.
What is the projected incremental cash flow of the machine for year 1?
A) 66,350 B) 60,200 C) 68,200 D) 54,800