Read the following scenario and answer the questions that follow. While driving to work in Vermont, Susan, a citizen of Vermont, is struck by a truck driven by Will, a citizen of Illinois. Will's employer, Frank's Furniture, a corporation headquartered in Vermont but incorporated in Delaware, owned the truck. Susan sustains serious injuries resulting in $80,000 in medical bills 1. If Susan sues Will and Frank's Furniture for $80,000 in damages resulting from her injuries in federal district court in Montpelier, Vermont, will the court have proper subject matter jurisdiction?
No, because the amount in controversy is only $80,000.
No, because the case lacks a federal question.
Yes, because there is diversity of citizenship federal jurisdiction.
Yes, because the accident occurred in Vermont
No, because there is no diversity of citizenship federal jurisdiction.

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