Q 1: Choose the correct Before Tax Cash Flow Diagram for this scenario from the following choices.

Q2: Identify the correct Function Notation of AW for supplier Q1.

-4,000 (A/P, 12%, 20) - 1,400 + 800 (A/F, 12%, 20) + 4.00N

-4,000 (A/P, 12%, 5) - 1,400 + 800 (A/F, 12%, 5) - 4.00N

-4,000 (A/P, 12%, 5) - 1,400 (A/P, 12%, 5)+ 800 (A/F, 12%, 5) + 4.00N

-4,000 (A/P, 12%, 5) - 1,400 + 800 (A/F, 12%, 5) + 4.00N

Q3: Identify the correct Function Notation of AW for Q2.

Group of answer choices

3,000 (A/P, 12%, 20) - 1,100 + 700 (A/F, 12%, 20) + 1.75N

-3,000 (A/P, 12%, 4) - 1,100 + 700 (A/F, 12%, 4) - 1.75N

-3,000 (A/P, 12%, 4) - 1,100 + 700 (A/F, 12%, 4) + 1.75N

-3,000 (A/P, 12%, 4) - 1,100(A/P, 12%, 5) + 700 (A/F, 12%, 4) + 1.75N

Q4: From the equations identified in Parts b and c, select the correct equation of the number of units the company should sell each year to breakeven

Group of answer choices

4N-2383.71= 1.75+ 1941.24

4N- 2383.71=2.75-1941.24

N=2383.71-1941.24

4N - 2383.71 = 1.75N - 1941.24

Q5:How many units per year must the company sell in order to justify using Q1? Enter your answer in the form: 12345.67

Q6: Provide a statement to your answer to Q5.

Group of answer choices

C: The company needs the maximum amount found in part "E" per year to break-even

B: The company needs the minimum amount found in part "E" per year to break-even

A: The company needs the exact amount found in part "E" per year to break-even

Both A & B

A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below. The equipment from supplier A costs more to buy and maintain, but it also has more revenue per unit sold. Selling enough units will at some point make it worth the higher cost. How many units per year must the company sell in order to justify using supplier A (i.e. what is the breakeven number of units to sell)? Use an interest rate of 12% per year. Supplier A $4,000 Supplier B $3,000 Initial cost $4 $3 $0 $1.25 Sale price (revenue per unit) Transportation costs (per unit) Annual maintenance cost Salvage value Useful life of the equipment (years) $1,400 $1,100 $800 $700 5 4 Supplier A Supplier B Supplier A Supplier B 800 700 800 700 + 4N 3N - 1.25N 1,400 1,100 Option A Option B 0 0 0 0 15 5 4 1,400 1,100 4N 3N - 1.25N i = 1296 3,000 i = 1296 i = 1295 3,000 i = 1295 +4,000 4,000 Supplier A Supplier B Supplier A Supplier B 800 700 800 700 Option C 0 0 Option D 0 0 20 20 20 20 1,400 +4N 1,100+ 3N - 1.25N 1,400 + 4N 1,100 + 3N - 1.25N i = 1296 3,000 i = 1296 i = 1296 3,000 i = 1296 4,000 4,000