What is the cost of marginal investments in accounts receivable under the proposed plan? (See Table 14.5)

A) $1,817
B) $1,867
C) $1,733
D) $1,617

C

Business

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Parking at a large university has become a very big problem. University administrators are interested in determining the average parking time (e.g. the time it takes a student to find a parking spot) of its students. An administrator inconspicuously followed 250 students and carefully recorded their parking times. What type of variable is the administration interested in collecting?

A) qualitative data B) quantitative data

Business

(Present value tables are needed.) O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000

Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,920,000 $2,500,000 Estimated life 10 years 10 years Estimated residual value $50,000 $80,000 Estimated annual cash inflows over the next 10 years $400,000 $500,000 Required rate of return 10% 10% The net present value of the Indiana proposal is closest to A) $538,000. B) $557,300. C) $461,650. D) $1,171,800.

Business