Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The profitability index for Project A is

Select one:

a. 1.22

b. 1.12

c. 1.27

d. 1.17

Abey, Inc. owns 5% of the common stock in the Sea Company. Abey received $100,000 in dividends during 2007 on its investment in Sea. What amount will Abey include in taxable income, and what amount will Sea deduct, respectively?

Select one:

a. $100,000; $100,000

b. $30,000; $0

c. $30,000; $100,000

d. $100,000; $0

if the Accumulated depreciation in a company was 80,000 in 2019 and then increased to reach 132,000 in 2020. Then we would report the depreciation expense in the cash flow statement:-

Select one:

a. (52000)

b. 80000

c. 132000

d. 52000