Project #8695 - Corporate Finance

3.  A piece of newly purchased industrial equipment costs $960,000 and is classified as a seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the year book value for this equipment.\Hint:  The seven-year-table is on page 285 of the text.



4.     A firm has annual sales of 32,000 units at an average selling price of $62 a unit. The carrying cost per unit is $5.00. The fixed cost per order is $40. The inventory is allowed to fall to zero before it is restocked.


        Compute the economic order quantity for this firm (EOQ)

Subject Business
Due By (Pacific Time) 07/08/2013 12:00 am
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