The director of capital budgeting of South Park Development Corporation is evaluating a project that will cost $200,000; it is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $44,503 per year

A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are two origins for this raw material, which must be shipped to three manufacturing plants

The current network has the following characteristics: The firm has identified two potential sites for a third raw material source; these are identified as Candidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2, and $12 to Plant 3, respectively. From B, these costs would be $11, $14, and $8, respectively. The new source, wherever it is located, will have a capacity of 500 units. Set up this problem as two separate transportation matrices. (Do not solve the problem.)

XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness. This announcement led to a dramatic decrease in the stock value of the company

The company hired a new CEO two years ago when the clinical trials for this drug had already initiated. Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals? A) The CEO should receive lower compensation since shareholder returns have been declining. B) The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation. C) Each company handles this situation differently. D) The compensation of this CEO depends only on pretax profit margins.