"your firm will be sing a machine that originally cost $50,000 in a new project. The machine has a book value of $25,000 and a market value of $40,000. Ignoring taxes, what is the correct opportunity cost for this machine in the capital budgeting decision?"

a. $240,000

b.$333,333

c. $400,000

d. $516,167

e. $600,000

"One reason why firms hold cash is in anticipation of taking advantage of unforeseen opportunities. This is called"

a. speculation

b. the liquidity requirement

c. meeting transaction needs

d. hedging against uncertainty

e. arbitrage

"the primary goal of the corporation is to"

a. maximize the firms profits

b. maximize the firms net income

c. maximize the current market value of the shares

d. maximize market share

e. minimize the firms costs

"the trektronics store begins each week with 162 phasers in stock. this stock is depleted each week and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $50. What is the optimal order quantity"

a. 25 phasers

b. 66 phasers

c. 94 phasers

d. 127 phasers

e. 180 phasers

"on the balance sheet, property, plant and equipment are typically shown using their"

a. accrued value

b. historical cost

c.replacement cost

d. appreciated book value

e. market value

"if you were to pay $1,000 for an art appreciation course that is expected to give you $200 per year in enjoyable benefits for 30 years and your opportunity cost of capital is 10 percent, what is the NPV of the art appreciation class"

a. -$382

b. $618

c. $885

d.$1,000

e. $1,885

a company can raise long-term financing in the

a. capital market

b. money market

c. foreign-exchange market

d. commodities market

e. markets for options and other derivatives