Acme Inc. is evaluating a new project to produce rockets. The project will involve $200,000 to purchase a new machine.

Every year, Acme will need to spend $5,000 to keep the machine running and the revenue is $75,000 per year by selling the rockets.

Every 2 years, Acme will have to spend $1,000 to update the machine.

Acme Inc. expects that the machine will last for 10 years, and at the end of 10 years, Acme will be able to sell the machine for $50,000.

1. What is the annual operations and maintenance cost?

a. $5,000

b. $5,500

c. $6,000

d. $50,000

e. $35,000

2. What is the overhaul cost?

a. $500 every year

b. $1,000 every five years

c. $5,000 every five years

d. $2,500 every two years

e. $70,000 every ten years

3. What is the salvage value of the machine at the end of 10 years?

a. $45,000

b. $50,000

c. $150,000

d. $250,000

e. $945,000

Employers hiring for entry-level positions in hospitality and tourism expect workers to

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.