Nimo co. purchased a machine for $12,000 and estimates it will use the machine for five-years with a $2,000 salvage value. using the double declining-balance depreciation method, compute the machine's first year depreciation expense.

What is the most important type of decision that the financial manager makes?

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.