8 . The measurement of the benefit lost by using resources for one purpose and not another is
9 . Which of the following statements is correct regarding the weighted-average cost of capital ( WACC )?
10 . Carter Co . paid $ 1,000,000 for land three years ago . Carter estimates it can sell the land for $ 1,200,000 , net of selling costs . If the land is not sold , Carter plans to develop the land at a cost of $ 1,500,000 . Carter estimates net cash flow from the development in the first year of operations would be $ 500,000 . What is Carter ' s opportunity cost of the development ?
11 . A company with a combined federal and state tax rate of 30 % has the following capital structure : What is the weighted-average after-tax cost of capital for this company ?
12 . Which of the following is assigned to goods that were either purchased or manufactured for resale ?
13 . Management at MDK Corp . is deciding whether to replace a delivery van . A new delivery van costing $ 40,000 can be purchased to replace the existing delivery van , which cost the company $ 30,000 and has accumulated depreciation of $ 20,000 . An employee of MDK has offered $ 12,000 for the old delivery van . Ignoring income taxes , which of the following correctly states relevant costs when making the decision whether to replace the delivery vehicle ?
14 . Alpha Corporation has the following capital structure and related cost of capital for each source : Which one of the following is Alpha ' s weighted average cost of capital ?
15 . A company uses its company-wide cost of capital to evaluate new capital investments . What is the implication of this policy when the company has multiple operating divisions , each having unique risk attributes and capital costs ?