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Multiple Choice Questions 1 Levi Strauss has some of its jeans stone-washed under a contract with independent US Garment Corp If US Garment s operating cost per machine is $22000 for year 1 and

Multiple Choice Questions 1. Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment s operating cost per machine is $22,000 for year 1 and increases by a constant $1000 per year through year 5, what is the equivalent uniform annual cost per machine for the 5 years at an interest rate of 8% per year? (a) $23,850 (b) $24,650 (c) $25,930 (d) Over $26,000 2. The F/G factor values can be derived by multiplying: (a). (P/F) and (A/G) factor values (b). (F/P) and (A/G) factor values (c). (P/F) and (P/G) factor values (d) (F/P) and (P/G) factor values 3. At i = 4% per year, A for years 1 through 6 of the cash fl ows shown below is closest to: (a) $300 (b) $560 (c) $800 (d) $1040  4. The value of the factor (P/F, i, 10) can be found by getting the factor values for (P/F, i, 4) and (P/F, i, 6) and: (a) Adding the values for (P/F, i, 4) and (P/F, i, 6) (b) Multiplying the values for (P/F, i, 4) and (P/F, i, 6) (c) Dividing the value for (P/F, i, 6) by the value for (P/F, i, 4) (d) None of theabove

May 11 2020 View more View Less

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