An analysis of a proposal by the net present value method indicated that the present value of future cash inflows exceeded the amount to be invested. Which of the following statements best describes the results of this analysis?
A) The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
B) The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
C) The proposal is undesirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
D) The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
A
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Indicate whether the statement is true or false
Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2017, Clemente sold equipment to Snider for $125,000. The equipment cost Clemente $140,000. At the time of the transfer, the balance in accumulated depreciation was $40,000. The equipment had a remaining useful life of five years and a $0 salvage value. Both entities use the straight-line method of depreciation.At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2017?
A. $80,000. B. $105,000. C. $100,000. D. $95,000. E. $85,000.
Which of the following is a cause of tension between salespeople and marketing personnel in a high-tech company?
A. Multi-channel marketing strategies and hybrid channel design B. Co-location C. Different orientations and mind sets D. Integrated sales-and-marketing relationships with common metrics for compensation E. C and D only
Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?
A. Companies often use a combination of a process costing and job order costing systems. B. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process. C. All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period. D. In most manufacturing environments, it is not possible to conduct a physical count of units. E. In most cases, there is no difference between physical units and equivalent units of production.