Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.
Your numbers will vary.
Find the expected return given three states of the economy and the corresponding return if that state occurs.
Your numbers will vary.
Given the cost of a new kiln, the installation cost, the years of use, the tax rate, and the opportunity cost… determine the present value of the tax shield using two different methods: a tax-deductible expense, or if it is depreciated straight-line. Which one results in the higher cost? The lower cost?
Your numbers will vary.