Which of the Following,if True,would Strengthen Michaels's Argument

question 47

Multiple Choice

Which of the following,if true,would strengthen Michaels's argument?

• A) The company's gross sales went up from the previous year.
• B) Total operating expenses were high in the current year.
• C) The company has only one part-time accountant.
• D) There were few sales returns in the current year.
• E) Offshoring allowed the company to trim administrative salaries by 25 percent.

---

Definitions:

Incremental After-Tax Income

The additional net income that results from implementing a new project or decision, after accounting for taxes.

Present Value Factors

Factors used to calculate the present value of a future amount of money or stream of cash flows, considering the time value of money.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, reflecting the risk associated with the investment.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period, indicative of its financial health.