Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment$410,000 Annual cash flow $117,000per yearExpected life of the project 4yearsDiscount rate 9%See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.The net present value of the project is closest to:
A. $378,963
B. $58,000
C. $(31,037)
D. $410,000
Answer: C
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Which of the following statements concerning manufacturing costs is incorrect?
A. Direct labor costs are recorded initially in an inventory account. B. The cost of direct materials can be readily traced to products. C. All salaries incurred by the sales department are expensed as incurred. D. Depreciation on manufacturing equipment is a period cost.
Scenario 17.2 Use the following to answer the questions. The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C.Penney's, through its own sales force. Marilyn Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the United States. Marilyn has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials that
demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Marilyn and other members of the sales force will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. Refer to Scenario 17.2. Presto appears to be using ____ to educate its sales force. A. formal sales training B. on-the-job training C. negative motivation D. territorial meetings E. recruiting training
Very few states limit the amount of damages that can be awarded in tort cases
Indicate whether the statement is true or false
All things considered, investors with limited resources should
A) not invest in corporate bonds. B) buy corporate bonds in the open market to save transaction costs. C) buy corporate bonds through pooling arrangements. D) borrow money to buy corporate bonds in sufficiently-large quantities.