Plant assets often require expenditures subsequent to acquisition. it is important that they be accounted for properly. any errors will affect both the balance sheets and income statements for a number of years. for each of the following items, indicate whether the expenditure should be capitalized or expensed in the period incurred. items
(a) improvement.
(b) replacement of a minor broken part on a machine.
(c) expenditure that increases the useful life of an existing asset.
(d) expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its salvage value.
(e) expenditure that increases the efficiency and effectiveness of a productive asset and increases the asset’s salvage value.
(f) expenditure that increases the quality of the output of the productive asset.
(g) improvement to a machine that increased its fair market value and its production capacity by 30% without extending the machine’s useful life.
(h) ordinary repairs.

Identify an organization with the low-total-cost value proposition and suggest at least two possible measures within each of the four balanced scorecard perspectives.

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?