As per the Risk and Return evaluation matrix for Six Sigma projects, projects that are home runs have a
A) low risk factor and low return factor.
B) high risk factor and low return factor.
C) low risk factor and high return factor.
D) high risk factor and high return factor
C) low risk factor and high return factor.
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The Loss on Disposal of Equity Investments is reported in the ________.
A) other income and (expenses) section of the income statement B) stockholders' equity section of the income statement C) stockholders' equity section of the balance sheet D) losses section of the statement of retained earnings
Which technique is used to evaluate cost trade-offs among various options?
a. Linear regression b. Break-even analysis c. The House of Quality d. Performance Analysis
Which one of the following statements is TRUE about the relationship between learning curves and competitive strategy?
A) Knowing where your process is on the learning curve will enable you to make frequent product modifications. B) Firms that emphasize low cost in their competitive strategy strive to move down the learning curve by increasing volume. C) Learning curves enable managers to project fixed manufacturing costs for future production quantities. D) Projecting the impact of learning curves into the future is one effective way of reducing the impact of environmental uncertainty.
Lasalle Industries is considering the purchase of a new machine that will cost $250,000, plus an
additional $10,000 to ship and install. The new machine will have a 5-year useful life and will be depreciated to zero using the straight-line method. The machine is expected to have a salvage value of $30,000 at the end of year five. LaSalle's income tax rate is 40%. The additional net working capital from this project of $50,000 is expected to return to its pre-project level upon termination. What is the non-operating terminal cash flow of the machine? A) $68,000 B) -$32,000 C) $48,000 D) $80,000