Which letter choices are the solutions for the following?

Jeff's Stereo Sound is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the floor inventory by $150,000 and increasing its debt to suppliers by 50% of that amount. The company will also spend $200,000 for a building contractor to expand the size of the showroom. As part of the expansion plan, the company will be offering credit to its customers and thus expects accounts receivable to rise by $25,000. For the project analysis, what amount should be used as the initial cash flow for net working capital?

Select one:

a. $75,000

b. $100,000

c. $125,000

d. $150,000

e. $175,000

The discounted payback period of a project will decrease whenever the:

Select one:

a. Discount rate applied to the project is increased.

b. Initial cash outlay of the project is increased.

c. Time period of the project is increased.

d. Amount of each project cash inflow is increased.

e. Costs of the fixed assets utilized in the project increase.

Jamie's Motor Home Sales currently sells 1,000 Class A motor homes, 2,500 Class C motor homes, and 4,000 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 950 units while the Class C campers decline to 2,200. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $125,000 each. Class C homes are priced at $39,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $47,900. What is the erosion cost?

Select one:

a. $6,250,000

b. $18,100,000

c. $53,750,000

d. $93,150,000

e. $118,789,500