List three critical questions that a feasibility study should answer.
What will be an ideal response?
May include any of the following:
Does the idea fulfill a need or solve a big problem?
Is there both a short- and long-term market potential?
Who are the customers, and what are they willing to pay?
Does the opportunity provide competitive uniqueness?
Is the business model feasible (can it be done) and viable (can it be sustainable)?
Is this a go or a no-go?
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Scholars describe ______ as a useful strategy for sharing information with others that occurs gradually over time as trust is established in a relationship.
a. self-realization b. self-identity c. self-disclosure d. self-actualization
The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible
Indicate whether the statement is true or false
If the EPA determines that a pollutant is a threat to public health or the environment:
a. tighter control standards are to be imposed without regard to economic factors b. tighter control standards are to be imposed with careful analysis of economic factors c. tighter control standards are to be imposed only if they will not have adverse economic effects d. it will eventually impose slightly stricter standards e. Congress will impose some new standards
Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems
Revenues 4.3 - Manufacturing Expenses -0.5 - Marketing Expenses -0.25 - Depreciation -0.5 = EBIT 3.05 - Taxes (40%) -1.22 = Unlevered net income 1.83 + Depreciation +0.5 - Additions to Net Working Capital -0.4 - Capital Expenditures -6 = Free Cash Flow 1.93 It has made the above estimates of free cash flows resulting from such a decision (all quantities in millions of dollars). There are some concerns that estimates of manufacturing expenses may be low, due to the rising cost of raw materials. What is the break-even point for manufacturing expenses, if all other estimates are correct and the cost of capital is 9%? A) $1.66 million B) $1.83 million C) $1.99 million D) $2.32 million