____________________ are used in the manufacturing process but do not become a major part of the finished product

Fill in the blank(s) with correct word


Indirect materials

Business

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The proposed purchase price of an asset should be compared to the present value of the benefits it will generate over its useful life

Indicate whether the statement is true or false

Business

The _______ are current or prospective customers who are experiencing problems or needs that will become widespread in the market in the foreseeable future. They would derive significant value immediately from an innovative solution

a. lead-users b. leap-froggers c. alpha-testers d. prototypes

Business

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.

Business

Barrie owns 100% of a Subchapter S corporation and her basis in the stock is $200,000. In the current year, the corporation reports an ordinary loss of $250,000 and interest income of $20,000. How much of the loss can Barrie claim in the current year?

A. $250,000. B. $220,000. C. $200,000. D. The amount cannot be determined with the information provided.

Business