U3 company is considering three long-term capital investment proposals. each investment has a useful life of 5 years. relevant data on each project are as follows. project bono project edge project clayton capital investment $168,000 $183,750 $202,000 annual net income: year 1 14,700 18,900 28,350 2 14,700 17,850 24,150 3 14,700 16,800 22,050 4 14,700 12,600 13,650 5 14,700 9,450 12,600 total $73,500 $75,600 $100,800 depreciation is computed by the straight-line method with no salvage value. the company’s cost of capital is 15%. (assume that cash flows occur evenly throughout the year.)

1- compute the cash payback period for each project: bono, edge, clayto
2- compute the net present value for each project.
3- compute the annual rate of return for each project.
4- rank the projects on each of the foregoing bases. which project do you recommend?

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?

Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right