37. Roske Company is considering a project with an initial investment of $40,000 and annual

cash inflows of $8,000 per year for seven years. The company's cost of capital is 12 percent. Factors for a 12 percent interest rate for seven years are shown below:

Future Value of $1 Present Value of $1 Future Value of an Annuity Present Value of an Annuity

2.211 0.452 10.089 4.564

Using the net present value (NPV) to evaluate this proposal, the company should:

invest in the proposal since the NPV is 36,512

reject the proposal since the NPV is ($3,488).

reject the proposal since the NPV is ($36,512).

invest in the proposal since the NPV is $3,488.

None of the answer choices is correct.

38. Miller Inc. had the following sales during 2016:

Quarter 1 10,000 units Quarter 2 11,000 units

Quarter 3 14,000 units Quarter 4 12,000 units

Miller expects sales in each quarter of 2013 to be 10% more than the respective quarters for 2016. If each unit sells for $110, what amounts will appear as sales revenue in the quarterly sales budgets for 2013?

$990,000; $1,089,000; $1,386,000; $1,188,000

$1,100,000; $1,210,000; $1,540,000; $1,320,000

$1,421,750; $1,421,750; $1,421,750; $1,421,750

$1,210,000; $1,331,000; $1,694,000; $1,452,000

None of the answer choices is correct.

39. Alta Vista Company plans to sell 90,000 units in June and 135,000 units in July. The companys policy is to keep 15% of the next month's sales in ending inventory. If the ending inventory in May was consistent with this policy, how many units should be produced in June?

110,250 units

83,250 units

96,750 units

123,750 units

There is not enough information to answer this question.

40. Fireside Inc. had sales as follows during 2016:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

15,000 units 15,500 units 18,000 units 16,000 units