When a bank grants a line of credit, a "commitment fee" is assessed at the start of the loan.
Answer the following statement true (T) or false (F)
True
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A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $100,000. The present value of the future cash flows at the company's desired rate of return is $100,000. The IRR on the project is 12%. Which of the following statements is true?
A) The project should not be accepted because the net present value is zero. B) The desired rate of return used to calculate the present value of the future cash flows is less than 12%. C) The desired rate of return used to calculate the present value of the future cash flows is more than 12%. D) The desired rate of return used to calculate the present value of the future cash flows is equal to 12%.
A company is planning to introduce a new portable computer to its existing product line. Management must decide whether to make the computer case or buy it from an outside supplier. The lowest outside price is $90. If the case is produced internally, the company will have to purchase new equipment that will yield annual depreciation of $130,000. The company will also need to rent a new production facility at $200,000 a year. At 20,000 cases per year, a preliminary analysis of production costs shows the following: Per case Direct materials $ 40.00Direct labor 32.00Variable overhead 10.00Equipment depreciation 6.50Building rental 10.00Allocated fixed overhead 7.50 Total cost $106.00 Required:(1) Determine whether the company should make the cases or buy
them from the outside supplier.(2) What other factors, besides cost, should the company consider? What will be an ideal response?
In a(n) ________ mistake, only one party is mistaken about a material fact regarding the subject matter of the contract.
A. bilateral B. mutual C. innocent D. unilateral
Which of the following would be able to use the Equal Pay Act as a basis for a pay discrimination complaint against an employer?
A. Someone over the age of 55 B. A woman C. A Muslim D. Someone who is black