Author Question: LaSalle Industries is considering the purchase of a new strapping machine, which will cost 150,000, ... (Read 61 times)

nevelica

  • Hero Member
  • *****
  • Posts: 563
LaSalle Industries is considering the purchase of a new strapping machine, which will cost
  150,000, plus an additional 10,500 to ship and install.
 
  The new machine will have a 5-year useful
  life and will be depreciated to zero using the straight-line method. The machine is expected to
  generate new sales of 45,000 per year and is expected to save 16,000 in labor and electrical
  expenses over the next 5-years. The machine is expected to have a salvage value of 20,000.
  LaSalle's income tax rate is 35. What is the machine's IRR?
  A) 15.75 B) 18.86 C) 20.03 D) 19.15

Question 2

The forward-spot differential is the difference between the forward rate and the expected future
  spot rate.
 
  Indicate whether the statement is true or false



Toya9913

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

D

Answer to Question 2

FALSE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

For a complete list of videos, visit our video library