The second- year macrs depreciation is equal

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1. Special tools at a cost of $15,000 have been bought for the manufacture of some critical parts in a plastic company. It is estimated that the salvage value at the end of the useful life is $1,000. The second- year MACRS depreciation is equal to _______?

A) $4,667

B) $6,668

C) $6,223

D) $5,000

2. A stock has an expected return of 16 percent, its beta is 0.4, and the risk-free rate is 8.8 percent. What must the expected return on the market be?

a) 27.87%

b) 26.80%

c) 25.46%

d) 28.14%

e) 18.00%

Reference no: EM132049190

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