Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$30,000 Annual cash inflows $6,000 Salvage value of equipment$0 Life of the investment 15yearsRequired rate of return 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.The internal rate of return of the investment is closest to:
A. 16%
B. 18%
C. 22%
D. 20%
Answer: B
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Salmone Company reported the following purchases and sales for its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using LIFO.DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning Inventory150 units @ $10.00 5Purchase220 units @ $12.00 10Sales 140 units @ $20.0015Purchase100 units @ $13.00 24Sales 90 units @ $21.00
A. $2,850 B. $2,860 C. $2,580 D. $2,460 E. $2,590
In the liquidity-preference model, a decrease in people's incomes causes
A. both the nominal interest rate and the equilibrium quantity of money to increase. B. the nominal interest rate to increase and the equilibrium quantity of money to decrease. C. the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged. D. both the nominal interest rate and the equilibrium quantity of money to decrease.
Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?
A) bulk breaking B) selling and promoting C) buying and assortment building D) warehousing E) risk bearing
The amount of cost of goods available for sale during the year depends on the amounts of
A) beginning merchandise inventory, net cost of purchases, and ending merchandise inventory. B) beginning merchandise inventory and cost of goods sold. C) beginning merchandise inventory, cost of goods sold, and ending merchandise inventory. D) beginning merchandise inventory and net cost of purchases.