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The Following Information Pertains to an Investment by the Town

question 7

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The following information pertains to an investment by the Town of Sutton:  Investment $140,000 Annual revenues $96,000 Annual variable costs $32,000 Annual fixed out-of-pocket costs $20,000 Salvage value $12,000 Discount rate 12% Expected life of project 8 years \begin{array} { l r } \text { Investment } & \$ 140,000 \\\text { Annual revenues } & \$ 96,000 \\\text { Annual variable costs } & \$ 32,000 \\\text { Annual fixed out-of-pocket costs } & \$ 20,000 \\\text { Salvage value } & \$ 12,000 \\\text { Discount rate } & 12 \% \\\text { Expected life of project } & 8 \text { years }\end{array} Ignore income taxes. The present value of the salvage value (rounded) is

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Definitions:

Alternative Close

A sales technique where the salesperson presents multiple options to the prospect, indirectly nudging them towards making a decision.

Good Deal

A situation or agreement in which a person or party receives great value or advantage, often in terms of quality, price, or terms of sale.

New Boat

A term referring to a newly manufactured or newly acquired boat, fresh from production or purchase.

Weak Closing Statements

Inadequate or ineffective statements made at the end of a presentation or sales pitch, failing to strongly persuade or encourage a decision.

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