Customer advisory groups are often used as a type of exploratory research.
Answer the following statement true (T) or false (F)
True
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Kang Co. reports work in process inventory of $1,085 and cost of goods sold of $56,575. Days' sales in work in process inventory is:
A. 4 days B. 5 days C. 7 days D. 6 days E. 8 days
______ is(are) useful if you need to show something that is too large or small to bring to a presentation.
a. Text b. Graphs c. Models d. Photographs
Executive summaries usually make use of:
a. headings b. bullets c. both of the above d. none of the above
Spot-Free Car Wash is considering a new project whose data are shown below. The equipment to be used has a 3-year tax life, would be depreciated on a straight-line basis over the project's 3-year life, and would have a zero salvage value after Year 3. No new working capital would be required. Revenues and other operating costs will be constant over the project's life, and this is just one of the firm's many projects, so any losses on it can be used to offset profits in other units. If the number of cars washed declined by 40% from the expected level, by how much would the project's NPV decline? (Hint: Note that cash flows are constant at the Year 1 level, whatever that level is.)
Project cost of capital (r)10.0% Net investment cost (depreciable basis)$60,000 Number of cars washed2,800 Average price per car$25.00 Fixed op. cost (excl. deprec.)$10,000 Variable op. cost/unit (i.e., VC per car washed)$5.375 Annual depreciation$20,000 Tax rate25.0% A. $33,391 B. $35,149 C. $36,999 D. $38,946 E. $40,996