Larry's Lanterns Is Considering a Project Which Will Produce Sales

question 87

Multiple Choice

Larry's Lanterns is considering a project which will produce sales of £240,000 a year for the next five years.The profit margin is estimated at 6% .The project will cost £290,000 and be depreciated
Straight-line to a book value of zero over the life of the project.Larry's has a required accounting
Return of 8%.This project should be _____ because the AAR is _____.

• A)rejected; 4.14%
• B)rejected; 6%
• C)rejected; 8.28%
• D)accepted; 8.28%
• E)accepted; 9.93%

Understand the standard structure and components of a cover letter for a sales proposal.

Comprehend the role and importance of an executive summary in a business plan.

Grasp the significance of conservative estimations in budget preparation for proposals.

Identify the critical elements that should be included in the methods section of a proposal.

---

Definitions:

Necessary and Proper

A clause in the U.S. Constitution granting Congress the power to pass all laws deemed necessary and proper for carrying out its enumerated powers.

XYZ Affair

A diplomatic incident between France and the United States in 1797-98, which led to an undeclared naval war, caused by French demands for bribes from American negotiators.

Domestic Political Ramifications

The consequences or effects on a country's internal politics resulting from specific actions, policies, or events.

Republic's Ideology

A set of beliefs and values that emphasizes the welfare of the community over individual interests, supporting a form of government where power resides in elected individuals representing the citizen body.