The Meacham Tire Company is considering two mutually exclusive projects with useful lives of 3 and 6 years
The after-tax cash flows for projects S and L are listed below.
Year Cash Flow S Cash Flow L
0 -$60,000 -$115,000
1 38,000 28,500
2 25,000 49,500
3 35,000 26,850
4 22,600
5 18,750
6 23,500
The required rate of return on these projects is 14 percent. What decision should be made? As part of your
answer, calculate the NPV assuming a replacement chain for Project S, and also calculate the equivalent annual
annuity for each project.
Accept Project S because its replacement chain NPV of $1,999.96 is positive and is greater than the NPV of Project L of
$1,237.09. Also, the equivalent annual annuity for Project S is $514.30 while that of Project L is only $318.13.
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Which of the following should be added to net income in calculating net cash flow from operating activities usingthe indirect method?
a. depreciation expense b. an increase in inventory c. a gain on the sale of equipment d. dividends declared and paid
Alfonso, the union steward at Fizzy Soda, is attempting to persuade members of management to make certain revisions to the company's policies on job security and work rules on behalf of the union. The union believes that company management has neglected these aspects of the company's administration system for too long. Which level of decisions is Alfonso most likely concerned with in this scenario?
A. forming labor relations strategies B. administering agreements C. terminating contracts D. forming dissociation strategies E. negotiating contracts
'Preapproach' is the first stage in the selling process.
Answer the following statement true (T) or false (F)
Which of the following may be considered an attempt to cope with physical symptoms of stress?
A) Increased alcohol consumption B) Withdrawing from others C) Crying D) Sleeping less to work more