The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $187,440 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,242 and was permitted to keep all materials salvaged.
Mar. 10 Machinery that was purchased in 2013 for $22,720 is sold for $4,118 cash, f. o.b. purchaser's plant. Freight of $426 is paid on the sale of this machinery.
Mar. 20 A gear breaks on a machine that cost $12,780 in 2012. The gear is replaced at a cost of $2,840. The replacement does not extend the useful life of the machine but does make the machine more efficient.
May. 18 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,810 because of defective workmanship on the original base. The cost of the machinery was $20,164 in 2014. The cost of the base was $4,970, and this amount was charged to the Machinery account in 2014.
June. 23 One of the buildings is repainted at a cost of $9,798. It had not been painted since it was constructed in 2016.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Most angel investors expect a return on investment of question options: 20% to 25% over 5 years. 15% to 20% over 5 years. 75% over 10 years. 100% over 5 years.

What two things do you consider when evaluating the time value of money