Which statements indicate that rick’s company is a limited liability company? rick douglas is a bright and passionate lighting designer. following his passion for innovative lighting solutions, he founded a company called dazzle in 2000. dazzle is a successful, small company with annual revenue of $25 million. it offers residential, commercial, and theatrical lighting solutions. apart from rick, there are several other owners in the company who have made tremendous contributions to its growth. the profits are shared in a fair manner among all owners. because dazzle is not a separate tax entity, all the owners declare revenue earned through the company on their personal federal tax returns. the success of the company turned douglas and the other owners into millionaires. rick has a villa in the prestigious kimberly hills area. the $5 million dollar villa is protected from business liabilities unless the liability is incurred through wrongful acts.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51