Depreciated by the straight line method

Reference no: EM131064957

1. Inflation is really a measure of:

a) The size of the exponent in a future worth equation

b) The blue book value of a depreciable asset

c) The time it takes to recover an initial investment in equipment

d) The change in the value of a country's currency

2) For a market interest rate of 12% per year and an inflation rate of 7% per year, the real interest rate per year is closest to:

a) 4.7%

b) 7%

c) 12%

d) 19.8%

3) An asset with a first cost of $50,000 is to be depreciated by the straight line method over a 5 year period. The asset will have annual operating costs of $35,000 and a salvage value of $10,000. According to the straight line method, the book value at the end of year 3 will be closest to:

a) $8,000

b) $20,000

c) $24,000

d) $26,000

4) All of the following assets can be depreciated, except:

a) A bulldozer

b) A copper mine

c) A surgical robot

d) A conveyor belt

5) For a real interest rate of 18% per year and an inflation rate of 3% per year, the market interest rate per year is closets to:

a) 20%

b) 22%

c) 24%

d) 26%

Reference no: EM131064957

Questions Cloud

What are the coordinates and of the centroid c : One quarter of a square of side a is removed (see figure). What are the coordinates and of the centroid C of the remaining area?

Discuss the value of nursing theory : Discuss the value of nursing theory to the profession of nursing. Identify one way in which you could use nursing theory to improve your practice (present or future role). Provide a reference for your experience

Determine the distance to the centroid c : Determine the distance to the centroid C of a trapezoid having bases a and b and altitude h (see Case 8, Appendix D) by dividing the trapezoid into two triangles.

What is the current share price : Stock Valuation [LO1] Great Pumpkin Farms just paid a dividend of $3.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. What is the current share price

Depreciated by the straight line method : 2) For a market interest rate of 12% per year and an inflation rate of 7% per year, the real interest rate per year is closest to:

How far did she travel to the appointment : In the morning, may drove to an appointment at 50 miles an hour. Her average speed on the return trip in the afternoon was 40 miles per hour period the return trip took 1/8 hour longer. How far did she travel to the appointment

Determine the distances x and to the centroid c : Determine the distances x and to the centroid C of a semisegment of nth degree having base b and height h (see Case 19, Appendix D).

How much does she earn in a semimonthly pay period : If Barbara earns a salary of $15,860 a year and is paid semimonthly, how much does she earn in a semimonthly pay period

Determine which should be the thrust bearing : Determine which should be the thrust bearing, and find the magnitudes and directions of the forces answer

User Account

All Pages