Author Question: Alloy Corp is considering the acquisition of a new processing line. The processor can be purchased ... (Read 59 times)

james

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Alloy Corp is considering the acquisition of a new processing line. The processor can be purchased
  for 3,750,000; it will have a 10-year useful life. It will cost 165,000 to ship and 85,250 to install
  the processor.
 
  A recently completed feasibility study that was performed at a cost of 65,000
  indicated that the processor would produce a positive NPV. The processor will be depreciated
  using the straight-line method to zero expected salvage value. Studies have shown that
  employee-training expenses will be 125,000. What will be the annual depreciation expense of the
  processing line for capital budgeting purposes?
  A) 419,025 B) 390,000 C) 375,000 D) 400,025

Question 2

An exchange rate of 1.6 per British pound is an example of a direct quote in the United States.
 
  Indicate whether the statement is true or false


janieazgirl

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Answer to Question 1

D

Answer to Question 2

TRUE



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