Mid-Town Plumbers Inc is considering the purchase of a machine costing approximately $6,000. Using a discount rate of 19%, the present value of future cash inflows are calculated to be $6,700. To yield at least an 19% return, the actual cost of the machine should not exceed the $6,000 estimate by more than:
A) $4,000
B) $6,000
C) $800
D) $700
D
You might also like to view...
What should you do when developing a routine request or a positive message?
A) Slowly build up to the request or main idea B) Not assume that your audience will comply C) Demand action to ensure compliance D) Be non-specific when stating what you want E) State precisely what you want
How does the accounting prescribed in SFAS No. 13 seek to make a capital lease resemble a purchase by the lessee of an asset with debt financing?
What will be an ideal response?
When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
A. psychographic segmentation. B. geodemographic segmentation. C. benefit segmentation. D. concentrated segmentation. E. misguided geographic segmentation.
Companies use ______ systems to systematically plan and control their logistics and product distribution activities.
a. material resource planning (MRP) b. capacity requirements planning (CRP) c. distribution requirements planning (DRP) d. enterprise resource planning (ERP)