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Cameroon Corp. manufactures and sells electric staplers for $15.10 each. If 10,0

ID: 2485925 • Letter: C

Question

Cameroon Corp. manufactures and sells electric staplers for $15.10 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

$169,952

$155,530

$165,002

$160,196

$151,000

A company is considering the purchase of new equipment for $48,000. The projected annual net cash flows are $20,100. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 11% return on investment. The present value of an annuity of 1 for various periods follows:

    

   

$16,000

$3,100

$1,118

$19,100

$46,675

If budgeted beginning inventory is $8,950, budgeted ending inventory is $10,180, and budgeted cost of goods sold is $10,910, budgeted purchases should be:

$9,680

$730

$12,140

$1,960

$1,230

Cameroon Corp. manufactures and sells electric staplers for $15.10 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

$169,952

$155,530

$165,002

$160,196

$151,000

A company is considering the purchase of new equipment for $48,000. The projected annual net cash flows are $20,100. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 11% return on investment. The present value of an annuity of 1 for various periods follows:

    

Periods Present value of an annuity of 1 at 11% 1 0.9009 2 1.7125 3 2.4437

   

What is the net present value of this machine assuming all cash flows occur at year-end?

$16,000

$3,100

$1,118

$19,100

$46,675

If budgeted beginning inventory is $8,950, budgeted ending inventory is $10,180, and budgeted cost of goods sold is $10,910, budgeted purchases should be:

Explanation / Answer

Cameroon Corp. manufactures and sells electric staplers for $15.10 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

answer is

$160,196

january month sale = 10000*103/100 = 10300

febuary month sale = 10300*103/100= 10609

10609*15.10 = 160196

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