How many decision nodes are observed in the given decision tree?
A) 2
B) 3
C) 4
D) 7
A
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When Ford or any other automotive company sets up a matrix structure to develop a certain kind of car, what kind of team is the company most likely pulling together?
A) an action team B) a production team C) a project team D) an advice team E) a cross-functional self-managed team
Jonathon Company is considering an investment in the project below:
Project 1 Cost $10,000 Annual cash operating savings (end of year) $3,000 Terminal salvage $0 Useful life in years 5 Required rate of return 10% Present value of one for 5 periods at 10% 0.6209 Present value of ordinary annuity of one for 5 periods at 10% 3.7908 Ignoring taxes, what is the lowest level of annual cash operating savings that will result in a positive net present value? A) $2,420 B) $2,638 C) $3,000 D) $3,120