The firm is considering investing in some equipment costing $500,000. A 10% investment tax credit is available on the equipment. The equipment is depreciable using straight-line depreciation over 3 years with a zero salvage value. The firm uses an after-tax discount rate of 10% for this type of investment. The CFO asks you to estimate the present value of the tax savings from this investment. Assume the tax credit and first-year depreciation are taken immediately. How do the present value of the tax deductions compare with immediate expensing of the total outlay (with no investment tax credit)

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?

Lead time for one of your fastest-moving products is 20 days. demand during this period averages 90 units per day. a) what would be an appropriate reorder point? ) how does your answer change if demand during lead time doubles? ) how does your answer change if demand during lead time drops in half?

Inventory by three methods; cost of goods sold the units of an item available for sale during the year were as follows: jan. 1 inventory 20 units at $1,800 may 15 purchase 31 units at $1,950 aug. 7 purchase 13 units at $2,040 nov. 20 purchase 16 units at $2,100 there are 18 units of the item in the physical inventory at december 31. determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form: round your final answers to the nearest dollar. cost inventory method ending inventory cost of goods sold a. first-in, first-out method $ $ b. last-in, first-out method $ $ c. weighted average cost method $ $