Holt Co Is Considering Investing in a New Facility to Extract

question 174

Essay

Holt Co. is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $240,000, but will also increase annual expenses by $160,000. The facility will cost $980,000 to build, but will have a $20,000 salvage value at the end of its 20-year useful life.
Instructions
Calculate the annual rate of return on this facility.

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Definitions:

Hidden Objection

An objection that disguises the actual objection with either silence or triviality.

Salesperson's Action

Refers to the steps or initiatives taken by a salesperson to promote and sell a product or service, including communication, presentation, and negotiation.

Trial Close

A trial close is a sales technique in which the salesperson asks a potential customer a question or series of questions to gauge the customer's readiness to buy, before making the actual close.

Psychological Objection

A hidden objection based on the prospect’s attitudes.