1. Charles LLC has base sales of 100 and depreciation expense is 20% of sales. Assuming a 20% increase in sales, depreciation expense for the first pro forma year is
A. 22
B. 24
C. 26
D. 28
2. Adrian Ardell is saving for a new guitar. How much must Adrian set aside now to receive $4000, 7 years from now using a compound interest rate of 8% annually?
A. $2400
B. $2334
C. $2411
D. $2500
E. None of the above
3. Thomas Short expects to receive $2000 at the end of four years. What is the present value of this amount assuming a 10% annual compound interest rate (rounded to the nearest dollar)
A. $1730
B. $1366
C. $1210
D. $1114