Mr. a, who has a 35 percent marginal tax rate, must decide between two investment opportunities, both of which require a $50,000 initial cash outlay in year 0. investment 1 will yield $8,000 before tax cash flows in years 1, 2, and 3. this cash represents ordinary taxable income. in year 3, mr. a can liquidate the investment and recover his $50,000 cash outlay. he must pay a nondeductible $200 annual fee (in years 1, 2, and 3) to maintain investment 1. investment 2 will not yield any before-tax cash flow during the period over which mr. a will hold the investment. in year 3, he can sell investment 2 for $75,000 cash. his $25,000 profit on the sale will be capital gain taxed at 15 percent. assuming a 6 percent discount rate, determine which investment has the greater npv

True or false: a smart store layout moves customers in and out as fast as possible. a) true b) false

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.