Question
9.Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,200 units, August 7,800, September 7,900, October 8,800. Each handbag
9.Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,200 units, August 7,800, September 7,900, October 8,800. Each handbag requires 0.5 square meters of leather. Jared Inc.s finished goods inventory policy is 10% of next months sales needs. Jared Inc.s leather inventory policy is 40% of next months production needs. What will leather purchases be in August? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $220,000. The equipment will have an initial cost of $947,000 and have a 6 year life. There is no salvage value for the equipment. If the hurdle rate is 9%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)
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