Satine Enterprise Ltd. Recently bought a new company car for $25 000. The firm expects to replace it in five years' time. The current market resale value of the car in five years' time is $2900. The company uses an annual 35% depreciation rate.
1. Use the reducing balance method of depreciation to calculate the net book value of Satine Enterprise Ltd.’s new company car after the first two years.

If a bond is issued at a premium the effective interest rate is most likely

Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)

Aprimary advantage of organizing economic activity within firms is thea. ability to coordinate highly complex tasks to allow for specialized division of labor. b. low administrative costs because of reduced bureaucracy. c. eradication of the principal-agent problem. d. high-powered incentive to work as salaried employees for an existing firm.