Your firm is considering an investment that will cost $920,000 today. The investment will produce
cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5.
The discount
rate that your firm uses for projects of this type is 11.25%. What is the investment's net present
value?
A) $112,583 B) $192,369 C) $378,458 D) $540,000
B
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Indicate whether the statement is true or false
Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown in the following table:Production costs Direct materials$0.80per unitDirect labor$0.70per unitVariable overhead$500,000in totalFixed overhead$450,000in totalNon-production costs Variable selling and administrative$30,000in totalFixed selling and administrative$490,000in totalGiven this information, which of the following is true?
A. Net income under variable costing will exceed net income under absorption costing by $50,000. B. Net income will be the same under both absorption and variable costing. C. Net income under absorption costing will exceed net income under variable costing by $50,000. D. Net income under variable costing will exceed net income under absorption costing by $60,000. E. Net income under absorption costing will exceed net income under variable costing by $60,000.
Managers at Worldwide Auto establish a group, or a(n) ________ team, comprised of engineers from Germany, Japan, and the United States for the design and manufacture of a new vehicle.
A. cross-functional B. interest C. informal D. cross-cultural E. advocacy
The earliest finish time is calculated by adding the activity's duration to the predecessor's earliest finish time
Indicate whether the statement is true or false.