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QUIZ - CHAPTER TWO

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ANSWER THE QUESTIONS

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QUIZ - CHAPTER TWO
 

QUIZ - CHAPTER TWOOnline version

ANSWER THE QUESTIONS

by Sundoss ALMahadeen
1

The amount of money that Diamond Systems can spend now for improving productivity in lieu of spending $30,000 three years from now at an interest rate of 12% per year is closest to:

2

The amount of money that Diamond Systems can spend now for improving productivity in lieu of spending $30,000 three years from now at an interest rate of 12% per year is closest to:

3

Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment’s operating cost per machine is $22,000 for year 1 and increases by a constant $1000 per year through year 5, what is the equivalent uniform annual cost per machine for the 5 years at an interest rate of 8% per year?

4

Income from a precious metals mining operation has been decreasing uniformly for 5 years. If income in year 1 was $300,000 and it decreased by $30,000 per year through year 4, the annual worth of the income at 10% per year is closest to:

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