BUS 475 Course Great Wisdom / tutorialrank.com BUS 475 Course Great Wisdom / tutorialrank.com | Seite 23

the land for in 10 years? Note. Due to rounding and method of
calculation, your answer might vary slightly. Choose the closest
answer.

8. Bull Gator Industries is considering a new assembly line costing
$6,000,000. The assembly line will be fully depreciated by the
simplified straight line method over its 5-year depreciable life.
Operating costs of the new machine are expected to be $1,100,000 per
year. The existing assembly line has 5 years remaining before it will
be fully depreciated and has a book value of $3,000,000. If sold today
the company would receive $2,400,000 for the existing machine.
Annual operating costs on the existing machine are $2,100,000 per
year. Bull Gator is in the 46 percent marginal tax bracket and has a
required rate of return of 12 percent. Calculate the net present value of
replacing the existing machine. Note. Due to rounding and method of
calculation, your answer might vary slightly. Choose the closest
answer.

9. A strong stock market and reasonably good earnings have caused
the price of the firm's common stock to increase by 25%.

10. Buying and selling in more than one market to make a riskless
profit is called

11. The United States imposes substantial taxes on cigarettes but not
on loose tobacco. When the tax on cigarettes went into effect, the
demand for home cigarette rolling machines most likely