Westland College has a telephone system that is in poor condition. The system either can be overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives: Westland College uses a 10% discount rate and the total cost approach to net present value analysis. The working capital required under the new system would be released for use elsewhere at the conclusion of the project. Both alternatives are expected to have a useful life of eight years. The net present value of overhauling the present system is closest to: A. $(321, 084) B. $(532, 516) C. (560, 536) D. $(592, 516) The net present value of the new system alternative is: A. $(483, 095) B. $(583, 095) C. $(596, 395) D. $(536, 395) The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost and revenue data for the F-27 fan are as follows: If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. If the F-27 product is added next year, the change in operating income should be: A. $30,000 increase B. $5,000 decrease C. $23,000 increase D. $15,000 increase At what selling price would the new product be just breaking even? A. $52.25 per unit B. $50.50 per unit C. $55.75 per unit D. $49.00 per unit. Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The company's net operating income for the year was: A. $144,000 B. $120,000 c. $80,000 D. $60,000