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The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter’s five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

In public sector projects, to compare mutually exclusive alternatives, which of the following methods should be used?

Which of the following types of projects would be least likely to use a Benefit/Cost ratio?

Which of the following is not a difficulty often involved in performing a B/C analysis for projects in the public sector?

Your company owns a parcel of land in a currently undeveloped part of the county.  As the neighboring city grows eastward, you believe there is a 50% chance of residential development, a 20% chance of industrial development, and a 30% chance of no development of the area surrounding the parcel of land.  If you build a roller rink and the land is developed residentially the roller rink will have a present worth of $2,000,000. A roller rink in an industrial area will have a present worth of $20,000 and in an undeveloped area a present COST of $3,000,000.  What is the expected monetary value (EV) of the roller rink?

A company has invested $40,000 with purchase of  a truck for delivery of its product.   With MACRS depreciation, what is the book value of the truck at the end of the second year?

I understand that I may not navigate away from the test to any other web page or program (no accessing excel) while I am taking this exam. ANY instance of an image other than in the exam during the test will result in a grade of ZERO on this exam.

Your company owns a parcel of land in a currently undeveloped part of the county.  As the neighboring city grows eastward, you believe there is a 50% chance of residential development, a 20% chance of industrial development, and a 30% chance of no development of the area surrounding the parcel of land.   If you build a gas station and the land is developed residentially the station will have a present worth of $250,000. A station in an industrial area will have a present worth of $200,000 and in an undeveloped area a present COST of $10,000. What is the expected monetary value (EV) of the gas station?

There are times when a company must act quickly to make a decision.  Selecting the first alternative which meets a minimum set of requirements is known as

An equipment costing $20,000 for assembling an electronics assembly is being considered by Sam Electronics in Cookeville, Tennessee. The equipment falls under three-year property class as per MACRS depreciation method. The equipment will have a salvage value of $5000 at the end of its life.  If the equipment is sold at the end of 3 years for $8000, determine the loss on sale, recaptured depreciation and/or capital gain using the MACRS depreciation method.