Smarton company is in the process of preparing its budgeted income statement. it has determined its estimated gross margin to be $90,000. the company also expects to incur selling and administrative expenses of $30,000 and interest expense of $12,000. what would be smarton's budgeted net income? a) $48,000 b) $60,000 c) $30,000 d) $18,000

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?