Your company is considering a project which requires a $30,000 initial investment with a predicted salvage value at the end of its six year useful life of $8,000. you expect an annual return of $6,000 for the six year study period. additionally, the equipment will require an overhaul costing $1,000 at the end of the third year. evaluate the project using the irr method and a marr of 8.5%.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.