You decide to incorporate your bracelet business and get your mother and brother involved in the corporation. your executive committee is made up of you as the president, your mother as the secretary, and your brother as the treasurer. the three of you are the key officers of the corporation, with you as the ceo, your mother as the head of hr, and your brother as the cfo. the brady business friendship bracelet (bbfb), inc., conglomerate is ridiculously successful, earning the three key executives over $100,000 each in salary and bonuses. before you begin operating, the bbfb decides to become an s corp designation and to remain a closely held corporation. the corporation is sued in the state where it is incorporated. every member of the board of directors is liable personally for the lawsuit. true false

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51