Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (Ignore income taxes.): Incremental Net Operating IncomeIncremental Net Cash FlowsYear 1$54,000 $128,000 Year 2$31,000 $105,000 Year 3$52,000 $126,000 Year 4$49,000 $123,000 Year 5$48,000 $122,000 Assume cash flows occur uniformly throughout a year except for the initial investment.The payback period of this investment is closest to:
A. 5.0 years
B. 2.9 years
C. 4.9 years
D. 3.1 years
Answer: D
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To provide accurate performance appraisals, Samantha keeps a box of index cards on each of her employees. When an employee does something particularly well or particularly poorly, Samantha writes the event down on a card and puts it in that employee’s box. It appears Samantha is using the ______ method of performance appraisal.
A. critical incidents B. management by objectives C. narrative method D. behavioral anchored rating E. qualitative method
Which of the following statements is true of corporate strategy?
A. The objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value. B. A corporate strategy must be able to create synergies across business units that are quite different. C. Deciding whether to adopt a differentiation or a cost-leadership strategy is part of formulating the corporate strategy. D. Formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance.
Melvin is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Melvin is keeping
A. short order lead times. B. just-in-time inventory. C. a controlled usage rate. D. safety stock. E. excessive inventory.
Performance. Zilg is author of DuPont: Behind the Nylon Curtain, a historical account of the DuPont family in America's social, political, and economic affairs. Prentice-Hall, Inc, signed Zilg to a contract to publish the book exclusively. There was no
provision to have Prentice-Hall use its best efforts to promote the book; rather, it was left up to the publisher to use its discretion as to the number of volumes printed and the level of promotion. Prentice-Hall had originally planned a first printing of 15,000 copies and an advertising budget of $15,000 for the book. Later, having had second thoughts about the sales potential of the book, Prentice-Hall decided to do a first printing of only 10,000 copies and to reduce the amount it had allocated for advertising. In all, Prentice-Hall published a total of 13,000 volumes (3,000 beyond the sales volume at which it received the highest royalties), authorized an advertising budget of $5,500, distributed over 600 copies to reviewers, and purchased ads in major newspapers. Zilg later claimed that the reductions in the number of volumes printed and in the advertising budget were evidence that Prentice-Hall had not made a "best effort" to fully promote the book. Prentice-Hall claimed that its reduction came after careful review and was based on sound and valid business decisions. Based on these facts only, discuss whether Prentice-Hall has fulfilled its contractual duty to Zilg.