Purchasing power is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas, usually referred to as the cost of living

A broker is listing the property of a deceased owner who had five adult children. Two of the children are listing the property for sale. Before completing the listing agreement, the broker should do which of the following?

A. Check the ownership of the record to see if the persons who are listing the property are the current owners. B. Check th deceased owner's will to verify who the heirs are. C. Require all the adult children to sign the listing. D. Require all the adult children sign a quit claim deed.

Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified straight line method over its 5 year depreciable life

Operating costs of the new machine are expected to be $1,100,000 per year. The existing assembly line has 5 years remaining before it will be fully depreciated and has a book value of $3,000,000. If sold today the company would receive $2,400,000 for the existing machine. Annual operating costs on the existing machine are $2,100,000 per year. Bull Gator is in the 46 percent marginal tax bracket and has a required rate of return of 12 percent. a. Calculate the net present value of replacing the existing machine. b. Explain the impact on NPV of the following: i. Required rate of return increases ii. Operating costs of new machine are increased iii. Existing machine sold for less