Nimbus Inc

question 4

Multiple Choice

Nimbus Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $30,000 per year for ten years. The plant assets should be valued at

• A) $300,000.
• B) $300,000 plus imputed interest.
• C) present value of $30,000 annuity for ten years at an imputed interest rate.
• D) future value of $30,000 annuity for ten years at an imputed interest rate.

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Definitions:

Timely Inventory Control

The practice of managing and optimizing stock levels to meet demand without incurring excess or shortage, ideally in a timely manner.

Efficient Production Planning

A process that ensures resources are used effectively to meet production goals, minimizing waste and costs while maximizing output.

Financial Ratios

Quantitative measures derived from financial statements that are used to evaluate a company's financial health, performance, and viability.

Breakeven Quantity

The number of units that must be sold at a given price to cover all associated costs, resulting in neither profit nor loss.