You must evaluate a proposal to buy a new milling machine. the base price is $135,000, and shipping and installation costs would add another $8,000. the machine falls into the macrs 3-year class, and it would be sold after 3 years for $94,500. the applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in appendix 12a. the machine would require a $5,000 increase in net operating working revenues, but pretax labor costs would decline by $52,000 per year. the marginal tax rate is 35% and the wacc is 8%. also, the firm spent $4,500 last year investigating the feasibility of using the machine.

a. how should the $4,500 spend last year be handled?

b. what is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the year 0 project cash flow?

c. what are the project’s annual cash flows during years 1, 2, and 3?

d. should the machine be purchased? explain your answer.

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Problem 3: access control pokeygram, a cutting-edge new email start-up, is setting up building access for its employees. there are two types of employees: managers and engineers, and there are three departments: security, networking, and human resoures. each employee works in a single department, and each department is housed on a different floor. managers are allowed access to any floor, while engineers are allowed access only to their own floor. there are three badge-operated elevators, each going up to only one distinct floor. every employee has one badge. pokeygram wants to use the best possible access control method in order to minimize delay for the elevators (a) access control matrix, 1. which of the following would you recommend that pokeygram use: (b) access control lists, or (c) capabilities? make sure to justify your answer. 2. what, if any, would be the benefits (and/or disadvantages) of using rbac (role-based access control) in this situation? keep your solution for this problem limited to 10-12 lines of text.

Bruno's pizza restaurant makes full payment of $8,300 on an account payable to stella's cheese co. stella's would record this transaction with a