Mountain gear has been using the same machines to make its name brand clothing for the last five years a cost efficiency consultant has suggested that production costs may be reduced by purchasing mote technologically advanced machinery the old machines cost the company $100,000 the old machines presently have a book value of $60,000 and a market value of $6,000 they are expected to have a five-year remaining life and zero salvage value the new machines would cost the company $60,000 and have operating expenses of $9,000 a year the new machines are expected to have a five year useful life and no salvage value the operating expenses associated with the old machines are $15,000 a year the new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $5,000 a year select the true statement

a. the company will be $11,000 better off over the 5 year period if it replaces the old equipment
b. the company will be $20,000 better off over the 5-year period if it keeps the old equipment
c. the company will be $12,000 better off over the 5-year period if it replaces the old equipment
d. the company will be $6 000 better off over the 5-year period if it replaces the old equipment

You want to make an investment in a continuously compounding account over a period of two years. what interest rate is required for your investment to double in that time period? round the logarithm value and the answer to the nearest tenth.

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.