Actory construction cost: $150,000 / 1,000 widgets of annual production capacity · annual production capacity: 45,000 widgets/year · widget contracted sale price: $70 / widget, 2.0% annual price escalation · factory operating expense: $50 / widget, 1.0% annual escalation · depreciable basis: 100% of factory construction cost; 100% allocated to 5-year macrs · operations start: december 31, 2017 · year 1 interest expense: $200,000 · annual interest rate: 5% · annual principal amortization: 5% of principal balance

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions