Orange Computers, Inc

question 56

Multiple Choice

Orange Computers, Inc., is planning to spend $200,000 on the promotion of its new portable music player next year.The current market interest rate is 5 percent.What is the present value of this promotional budget?

• A)$175,146
• B)$185,123
• C)$190,476
• D)$200,000

---

Definitions:

Return on Sales

A financial ratio that calculates a company's net income relative to its revenue, showing how efficiently it converts sales into profits.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of a company.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.