________ is generally considered to be the least risky means of doing international business
A) Licensing
B) Trade
C) Franchising
D) Direct investment
B
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A 60-day, 10% note for $9,000, dated April 15, is received from a customer on account. The face value of the note is
A) $9,850 B) $7,200 C) $9,900 D) $9,000
Which two tactics for influencing others can be described as an effort to win favor and the good graces of others before making a request while the other is referencing the support of others as a reason for someone to agree to a request?
What will be an ideal response?
Which of the following is a key benefit of using the degree of leverage concept in financial analysis?
A. It allows decision makers a relatively clear assessment of the consequences of alternative actions. B. It establishes the optimal capital structure for the firm. C. It shows how a given change in leverage will affect sales. D. It identifies, with certainty, the future net income based upon sales projections about the future. E. None of the above statements is correct.
Orange Inc., the Cupertino-based computer manufacturer, has developed a new all-in-one device: phone, music-player, camera, GPS, and computer
The device is called the iPip. The following data have been collected regarding the iPip project. The company has identified a prime piece of real estate and must purchase it immediately for $100,000. In addition, R&D expenditures of $175,000 must be made immediately. During the first year the manufacturing plant will be constructed. The plant will be ready for operation at the end of Year 1. The construction costs are $500,000 and will be paid upon completion. At the end of the Year 1, an inventory of raw materials will be purchased costing $50,000. Production and sales will occur during years 2 and 3. (Assume that all revenues and operating expenses are received (paid) at the end of each year.) Annual revenues are expected to be $850,000. Fixed operating expenses are $100,000 per year and variable operating expenses are 25% of sales. The construction facilities are classified as 10-year property for tax-depreciation purposes. When the plant is closed it will be sold for $200,000. (Note: Assume the investment in plant is depreciated during years 2 and 3.) The land will be sold for $225,000 at the end of year 3. The tax rate on all types of income is 34%. The cost of capital is 12%. What are the operating cash flows at the end of Year 2? MACRS Depreciation Rates Year 10-Year 15-Year 1 10.00% 5.00% 2 18.00% 9.50% 3 14.40% 8.55% A) $304,750 B) $318,775 C) $321,750 D) $368,775 E) $371,750