Chris Tellson invested in a project with a payback period of 4 years. The project brings $30,000 per year for a period of 8 years. What was the initial investment?
A) $120,000
B) $7,500
C) $75,000
D) $240,000
E) cannot be determined from this information
A
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Bonita's employer has a nondiscriminatory childcare reimbursement plan (a type of flexible benefits plan). Bonita expects that her childcare expenses will total $2,000 for the current year. If she does not participate in the reimbursement plan, she will be allowed a $400 tax credit for childcare. Bonita's marginal tax rate is 24%. What are the tax effects of Bonita's alternatives? I.Bonita will save $2,000 by using the reimbursement plan.II.The reimbursement plan is $80 more favorable than the tax credit for Bonita.?
A. Only statement I is correct. B. Only statement II is correct. C. Both statements are correct. D. Neither statement is correct.
The purchase discount amount is calculated on the amount of the invoice minus the returns and allowances
Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) New SEC rules require firms to report option grants within two days of the grant date, which may help prevent further abuses. B) Studies have found evidence that the practice of timing the release of information to maximize the value of CEO stock options is widespread. C) Managers have an incentive to manipulate the release of financial forecasts so that good news comes out before options are granted and bad news is delayed until after the options are granted. D) The factor contributing most to the climb in CEO total compensation for the 1990s was the sharp increase in the value of stock and options granted each year.
Why isn't overstocking warehouses an effective solution for a problem of low availability?
A) It does not speed product time to market. B) It is an inefficient use of raw materials. C) It increases sales costs. D) It increases production costs. E) It increases inventory costs.