Question
33. Galla Incorporated is a competitive product market. The expected selling price is $320 per unit, and Galla's target profit is 20% of the selling
33. Galla Incorporated is a competitive product market. The expected selling price is $320 per unit, and Galla's target profit is 20% of the selling price. Using the target cost method, the highest that Galla's cost per unit can be is:
Group of answer choices
A) $248
B) $256
C) $192
D) $176
34. The time value of money concept:
A) Means that a dollar today is worth less than a dollar tomorrow.
B) Means that a dollar tomorrow is worth more than a dollar today.
C) Means that a dollar tomorrow is worth less than a dollar today.
D) Does not involve the concept of compound interest.
35. Which methods of evaluating a capital investment project ignore the time value of money?
Group of answer choices
A) Payback period and accounting rate of return.
B) Accounting rate of return and internal rate of return.
C) Internal rate of return and payback period.
D) Net present value and accounting rate of return.
36. A project requires a $30,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1 Year 2 Year 3 Total $ 12,000 3 8.000 $ 10,000 $ 30,000 Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below: i=10% i= 10% i=10% n=l n=2 n=3 0.9091 0.8264 0.7513Step by Step Solution
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