Question
Marrin Corporation makes three products that use the current constraint-a particular type of machine. Data concerning those products appear below: 42. Rank the products in
Marrin Corporation makes three products that use the current constraint-a particular type of machine. Data concerning those products appear below:
42. Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. A. KZ, XB, ZP B. ZP, KZ, XB C. XB, ZP, KZ D. KZ, ZP, XB
43. (Ignore income taxes in this problem.) A piece of new equipment will cost $70,000. The equipment will provide a cost savings of $15,000 per year for ten years, after which it will have a $3,000 salvage value. If the required rate of return is 14%, the equipment's net present value is: A. $8,240 B. $(8,240) C. $23,888 D. $9,050
44. (Ignore income taxes in this problem.) Girman Corporation is considering three investment projects: K, L, and M. Project K would require an investment of $27,000, Project L of $59,000, and Project M of $88,000. No other cash outflows would be involved. The present value of the cash inflows would be $31,860 for Project K, $66,080 for Project L, and $95,040 for Project M. Rank the projects according to the profitability index, from most profitable to least profitable. A. K, M, L B. K, L, M C. L, M, K D. L, K, M
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