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1. The fixed costs of a company are $500,000 per year Variable costs are 50%of sales. If the annual sales amount to $750,000, what is the annual profit or loss? 9. A $15,000 drill p by the straight-line what percentage of depreciation? (A) $125,000 loss (B) break-even (C) $250,000 profit (D) $125,000 profit (E) $50,000 A) 8% ( D) 14% loss 2. What is the present worth of $27,000 due in 6 years if money is worth 13% and is compounded semi-annually? 10. If a new tool sh $200 at the end of of $15, and the mir (A) $23,752 (D) $3,781 (B) $6,229 (E) $30,510 (C) $12,681 l 1, what is the present (A) -47 D)-1010 3. A machine costs $6,600. The accounting life of the machine is estimated to be 10 years. If the value of the machine after 10 years is $1,600, what is the depreciation in the fifth year? Use sum-of-the-years' digits method 11. What is the ma production functi X is units of produ (A) $454.54 (D) $2,776.21 (C) $654.54 (B) $500.00 (E) $545.45 P 200,000 4. An interest rate is quoted at being 7 5% compounded quarterly. What is the effective annual interest rate? (A) 200,000 (D) 305,000 (B) 9.18% (E) 7.45% (C) 7.71% (A) 33.56% (D) 14.63% 12. An investmen salvage value in 5 and annual prope What is the prese rate is 10% 5. An annuity of $5,600 is paid each year for 10 years The payment is made at year-end. If the interest rate is 10% what is the present worth of the 10 payments? (A) $14,626 (D) $56,000 (8) $89,247 (E) $34,410 A) -3,600 (D)-11,600 (C) $911 6. Building type A has a life of 10 years. The initial cost and cost of replacement every 10 years is $10,000. The annual maintenance is $100. $500 worth of repairs are 13. A factory is efficiency. Fixe cost per unit is The production What is the cur dollars) per per expected after the first 5 years of each building's life. What is the capitalized cost of a type A building? Assume an interest rate of 8% A) 4,020 ( lo (D) 4,020 (C) $21,500 (A) $10,000 (D) $11,250 (B) $20,500 (E) $21,800 14. Equations 7. You can either pay $7000 now for an asset or pay $1200 10 years. Whatgiven below. down and $900 at the end of each year for 10 years. What is the effective annual interest rate for the time payment series? C1 60 (C) 9% (A) 6% (D) 10% (B)8% (E) 13% (A) 90,000 (D) 2,300,00 ilfe orolact calls for investing $200.000 nuw

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