Which statement below regarding the AIS is false?
A) The AIS must be able to provide managers with detailed and operational information about the organization's performance.
B) Both traditional financial measures and operational data are required for proper and complete evaluation of performance.
C) The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data.
D) Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports.
D
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________ do not actually produce goods, but they do provide their customers with the time, place, and possession utility by making goods available when and where consumers want them
A) Resellers B) End users C) Not-for-profit organizations D) Producers E) Buying centers
You are analyzing the purchase of new equipment. Since you are not an expert on this type of
equipment, you hire a consulting firm to make recommendations. The consultant charged you $1,500 and recommended the purchase of the latest model from ACME Corp of America. The equipment costs $80,000, and it will cost another $10,000 to modify it for special use by your firm. The equipment will be depreciated on a straight-line basis over six years with no salvage value. You expect the equipment will be sold after three years for $28,000. Use of the equipment will require an increase in your company's net working capital of $4,000, but this $4,000 will be recovered at the end of year three. The use of the equipment will have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs. Your company's marginal tax rate is 35%. What is the terminal cash flow for this project? A) $24,500 B) $33,950 C) $37,950 D) ($17,000)