Questions from Corporate Finance

Q: The previous problem suggests that using CFLs instead of incandescent bulbs is

The previous problem suggests that using CFLs instead of incandescent bulbs is a no-brainer. However, electricity costs actually vary quite a bit depending on location and user type (you can get infor...

Q: The previous two problems suggest that using CFLs is a good idea

The previous two problems suggest that using CFLs is a good idea from a purely financial perspective unless you live in an area where power is relatively inexpensive, but there is another wrinkle. Sup...

Q: The debate regarding CFLs versus incandescent bulbs (see Problems 25–

The debate regarding CFLs versus incandescent bulbs (see Problems 25–27) has even more wrinkles. In no particular order: 1. Incandescent bulbs generate a lot more heat than CFLs. 2. CFL prices will p...

Q: Draw up an income statement and balance sheet for this company for

Draw up an income statement and balance sheet for this company for 2008 and 2009.

Q: Your small remodeling business has two work vehicles. One is a

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment....

Q: You have been hired as a consultant for Pristine Urban-Tech

You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fi ne zithers. The market for zithers is growing quickly. The company bought some land three years ago...

Q: Aguilera Acoustics, Inc. (AAI), projects unit sales for

Aguilera Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year …………………………..Unit Sales 1………………………………….………… 93,000 2……………………………………………105,000 3………………...

Q: A proposed cost-saving device has an installed cost of $

A proposed cost-saving device has an installed cost of $610,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial ne...

Q: Your company has been approached to bid on a contract to sell

Your company has been approached to bid on a contract to sell 17,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be o...

Q: Suppose we are thinking about replacing an old computer with a new

Suppose we are thinking about replacing an old computer with a new one. The old one cost us $650,000; the new one will cost $780,000. The new machine will be depreciated straight-line to zero over its...