Which financial statement reports a firm ’ s assets , liabilities , and equity at a particular point in time ?
Balance sheet
Income statement
Statement of retained earnings
Statement of cash flows
You are trying to pick the least-expensive machine for your company . You have two choices : machine A , which will cost $ 50,000 to purchase and which will have OCF of - $ 3,500 annually throughout the machine ’ s expected life of three years ; and machine B , which will cost $ 75,000 to purchase and which will have OCF of - $ 4,900 annually throughout that machine ’ s four-year life . Both machines will be worthless at the end of their life . If you intend to replace whichever type of machine you choose with the same thing when its life runs out , again and again out into the foreseeable future , and if your business has a cost of capital of 14 percent , which one should you choose ?
Machine A