If you cannot meet the deadline for filing your return, A) the IRS will level a penalty, regardless of whether you file an application for a time extension. B) the IRS will grant you an automatic extension if you file an application. You will be able to file a late return and late payment of […]
Date: September 19th, 2020
A firm is evaluating an investment proposal which has an initial investment of $5,000 and cash flows presently valued at $4,000. The net present value of the investment is: A) -$1,000 B) $0 C) $1,000 D) $1.25 ANSWER A
Date: September 19th, 2020
Under a full warranty, you may request a replacement or a refund after the dealer has had a reasonable number of attempts to fix the product and has failed to do so. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Costner Inc would like to introduce its new haircutting machine, the “terminator.” The machine will cost $15,000 today. As a result of purchasing the machine, Costner expects to give 5,000 more haircuts for $8 each. In the first year, Costner will give 2,000 more haircuts, and in the second year Costner will give 3,000 more […]
Date: September 19th, 2020
“Conventional financing” consists of all home loans A) made through the banking system. B) that are neither government-insured nor guaranteed. C) that are insured by the Federal Housing Administration. D) with fixed interest rates. ANSWER B
Date: September 19th, 2020
Carlos had $5,000 in capital losses last year and $8,000 in capital gains this year. He will include with (or exclude from) his other income this year A) $6,000. B) $3,000. C) $8,000. D) $0. ANSWER A
Date: September 19th, 2020
Federal Housing Administration (FHA) insurance protects A) you against defective title. B) the bank against defective title. C) the lender against loss on the mortgage. D) the borrower against foreclosure on the mortgage. ANSWER C
Date: September 19th, 2020
The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm’s cost of capital is […]
Date: September 19th, 2020
A warranty of merchantability means that the buyer has a right to expect that the good performs as expected. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Anita sold for $60,000 her home that she purchased ten years ago for $20,000. She then purchased another home a month later for $70,000. Her capital gain on the sale of the first home was A) $60,000 B) $40,000. C) $30,000. D) $0. ANSWER B
Date: September 19th, 2020
