Slick Company produces jump ropes. Slick Company has the following sales projections for the upcoming year:

First quarter budgeted jump rope sales in units	24,000
Second quarter budgeted jump rope sales in units	25,000
Third quarter budgeted jump rope sales in units	16,000
Fourth quarter budgeted jump rope sales in units	32,000

Inventory at the beginning of the year was

4,500

jump ropes. Slick Company wants to have

20%

of the next quarter's sales in units on hand at the end of each quarter. How many jump ropes should Slick Company produce during the first quarter?

A.

19,500

B.

33,500

C.

24,500

D.

2.

Puddle Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two: the B14 Model and the F54 Model. Financial data about the two choices follows.

	B14 Model	F54 Model
Investment	$310,000	$210,000
Useful life (years)	6	6
Estimated annual net cash inflows for useful life	$80,000	$40,000
Residual value	$50,000	$15,000
Depreciation method	Straightline	Straightline
Required rate of return	14%	12%

What is the net present value of the B14 Model?

Present Value of $1

Periods	8%	10%	12%	14%	16%
6	0.630	0.564	0.507	0.456	0.410
7	0.583	0.513	0.452	0.400	0.354
8	0.540	0.467	0.404	0.351	0.305
9	0.500	0.424	0.361	0.308	0.263
10	0.463	0.386	0.322	0.270	0.227

Present Value of Annuity of $1

Periods	8%	10%	12%	14%	16%
6	4.623	4.355	4.111	3.889	3.685
7	5.206	4.868	4.564	4.288	4.039
8	5.747	5.335	4.968	4.639	4.344
9	6.247	5.759	5.328	4.946	4.607
10	6.710	6.145	5.650	5.216	4.833

A.

$37,955 negative

B.

$23,920 positive

C.

$21,680 negative

D.

$333,920 positive