George is the owner of numerous classic automobiles. his intention is to hold the automobiles until they increase in value and then sell them. he rents the automobiles for use in various events (e. g., antique automobile shows) while he is holding them. in 2019, he sold a classic automobile for $1,500,000. he had held the automobile for five years, and it had a tax basis of $750,000.a. was the automobile a capital asset?
b. assuming a rate of return of 7%, how much would he have had to invest five years ago (instead of putting $750,000 into the car) to have had $1.5 million this year? the present value factor for 5 years at 7% is .7130.

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)