1. Rank the following items from the least to the largest book value at the end...

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1. Rank the following items from the least to the largest book value at the end of 5 years. Example: (A<B<C<D) A. B= 2,000, N = 10, SV = 0, (SL Method) B = 1,500, R = 150%, N = 15, SV = 50, (DB Method) C. B= 2,000, N = 15, i = 6.5%, SV = 0, (SF Method) В. D. B = 2,000, n = 10, SV = 0, (SOYD Method) 2. From number 11, how can the book value of B be made equal to that of A's? A. Set other variables the same except R by increasing it to 200%. Retain the other given, but increase the cost basis of B by approximately 1743.5088. C. Change the number of useful life of B to 22 years while others remain unchanged. D. Increase the cost basis of B to 2000 and its ratio of depreciation by 187.5453% В. 3. A property is analyzed using a before-tax MARR of 15%. Which of these is/are incorrect? A. If the effective income rate is 12%, then the after-tax MARR is 13.2% B. If a company's total sale is 12,000 and the income tax paid is 1,000, then the effective income tax rate is (25/3)%. C. If the after-tax MARR = effective income tax rate, then the rate is 13.0435%. D. If an equipment has a cost basis of 10,000 and it had a salvage value of 3,000 at the same time it was sold for 5,000, then the taxable income would be 2,000. 4. How does depreciation analysis compare with replacement analysis? A. Depreciation deals with the loss of value of a property with time while replacement deals with the deterioration of the property due to continued use. Both depreciation and replacement analyses deal with the continued use of property. C. Depreciation doesn't account the value obtained from the upgrades of a property while replacement analysis does. D. Replacement analysis deals with the possible alternatives that may replace the current asset while depreciation concerns only the current asset. В. 1. Rank the following items from the least to the largest book value at the end of 5 years. Example: (A<B<C<D) A. B= 2,000, N = 10, SV = 0, (SL Method) B = 1,500, R = 150%, N = 15, SV = 50, (DB Method) C. B= 2,000, N = 15, i = 6.5%, SV = 0, (SF Method) В. D. B = 2,000, n = 10, SV = 0, (SOYD Method) 2. From number 11, how can the book value of B be made equal to that of A's? A. Set other variables the same except R by increasing it to 200%. Retain the other given, but increase the cost basis of B by approximately 1743.5088. C. Change the number of useful life of B to 22 years while others remain unchanged. D. Increase the cost basis of B to 2000 and its ratio of depreciation by 187.5453% В. 3. A property is analyzed using a before-tax MARR of 15%. Which of these is/are incorrect? A. If the effective income rate is 12%, then the after-tax MARR is 13.2% B. If a company's total sale is 12,000 and the income tax paid is 1,000, then the effective income tax rate is (25/3)%. C. If the after-tax MARR = effective income tax rate, then the rate is 13.0435%. D. If an equipment has a cost basis of 10,000 and it had a salvage value of 3,000 at the same time it was sold for 5,000, then the taxable income would be 2,000. 4. How does depreciation analysis compare with replacement analysis? A. Depreciation deals with the loss of value of a property with time while replacement deals with the deterioration of the property due to continued use. Both depreciation and replacement analyses deal with the continued use of property. C. Depreciation doesn't account the value obtained from the upgrades of a property while replacement analysis does. D. Replacement analysis deals with the possible alternatives that may replace the current asset while depreciation concerns only the current asset. В.