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Engineering Economic Analysis, Third Edition: Chapter 12

Instructions: For each question, click on the radio button beside your answer. When you have completed the entire quiz, click the “Submit my answers” button at the bottom of the page to receive your results.

Question 1:

a) $32,400
b) $75,800
c) $71,280
d) $45,600

Question 2:

a) $74,480
b) $51,200
c) $45,500
d) $52,300

Question 3:

a) Both corporations will pay the same amount of income tax in Year 1.
b) Both corporations will have the same amount of net cash flows in Year 1.
c) Samuel Corporation will have a larger net cash flow than Aqua Corporation in Year 1.
d) Aqua Corporation will have a lower taxable income than Aqua Corporation in Year 1.

Question 4:

a) $1,270,000; $320,000
b) $1,295,000; $341,450
c) $1,500,000; $250,000
d) $1,450,000; $456,000

Question 5:

a) $5,460
b) –$5,460
c) –$2,256
d) $2,256