QRW Corp needs to replace an old lathe with a new, more efficient model. The old lathe was
purchased for $50,000 nine years ago and has a current book value of $5,000.
(The old machine is
being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs $100,000.
It will cost the company $10,000 to get the new lathe to the factory and get it installed. The old
machine will be sold as scrap metal for $2,000. The new machine is also being depreciated on a
straight-line basis over ten years. Sales are expected to increase by $8,000 per year while operating
expenses are expected to decrease by $12,000 per year. QRW's marginal tax rate is 40%. Additional
working capital of $3,000 is required to maintain the new machine and higher sales level. The initia
outlay for the new machine is
A) $111,000. B) $113,000. C) $109,800. D) $112,200.
C
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A) explains how your proposal will help readers meet their business objectives. B) reviews the reader's situation and established the need for action. C) states the boundaries of the proposal. D) convinces the reader that a problem or an opportunity exists. E) orients the reader to major divisions of information.
A young couple contacted a realtor about buying a new home. Now that the realtor has prospects, his next step should be to ________
A) handle any of their objections B) qualify them C) prepare his approach D) make a thorough sales presentation E) close the sale
Which one of the following statements correctly describes the unique feature of GNMA pass-through securities?
A) The interest income on a GNMA is exempt from state and federal tax. B) GNMAs consistently have lives of 25-30 years. C) GNMAs are backed by the full faith and credit of the issuing state. D) GNMAs pay income to holders on a monthly basis.
The results of a profile analysis enable the entrepreneur to judge
a. himself or herself. b. the competition. c. the business potential. d. venture capital opportunities.