In-Step Video Is Considering Expanding Its Video Rental Library to 8,000

question 13

Multiple Choice

In-Step Video is considering expanding its video rental library to 8,000 DVDs. The purchase price of the additional DVDs will be $80,000, and the shipping cost is another $4,000. To house the media, the owner will have to spend another $10,000 for display shelves, increase net working capital by $5,000, and interest expenses will add another $8,000 to the operating cost. What is the net investment to In-Step Video for this project?

• A) $95,000
• B) $99,000
• C) $84,000
• D) $107,000

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Definitions:

Verbal Report

An oral communication of information between individuals, often used in healthcare settings.

Oncoming Nurse

A nurse who is about to begin their shift and take over patient care responsibilities.

Heparin

An anticoagulant medication used to prevent and treat blood clots.

Partial Thromboplastin Time (PTT)

A blood test that measures how long it takes blood to clot, used to assess bleeding and clotting disorders and monitor anticoagulation therapy.