You Are Working on a Bid to Build Three Amusement

question 289

Multiple Choice

You are working on a bid to build three amusement parks a year for the next two years. This project requires the purchase of $52,000 of equipment which will be depreciated using straight-line
Depreciation to a zero book value over the two years. The equipment can be sold at the end of the
Project for $34,000. You will also need $16,000 in net working capital over the life of the project.
The fixed costs will be $10,000 a year and the variable costs will be $70,000 per park. Your
Required rate of return is 10% for this project and your tax rate is 35%. What is the minimal amount,
Rounded to the nearest $500, you should bid per amusement park?

• A) $20,000
• B) $66,500
• C) $68,000
• D) $74,000
• E) $79,500

Recognize the Big Five personality traits and their association with leadership effectiveness.

Identify and appreciate cultural influences on interpersonal relationships, specifically Confucian ideals.

Learn the concept of cardinal dispositions and their significance in shaping personality.

Understand the concept of "getting along" traits and their impact on interpersonal relationships.

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Definitions:

Returns To Scale

An economic concept describing how the increase in inputs affects the level of output of a production process.

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Inputs

Resources used in the production process, such as labor, capital, materials, and energy.

Production Isoquant

A production isoquant is a curve that represents all combinations of inputs that yield the same level of output, used in production theory to analyze efficient production.