Two Friends Consider Opening a Driving Range for Golfers

question 88

Multiple Choice

Two friends consider opening a driving range for golfers.They estimate such a range could generate rentals of 20,000 buckets at $3 a bucket in the first year, and expect rentals to grow at 750 buckets a year thereafter.The equipment requirements include ball dispensing machines, the ball pick-up, and the vehicle tractor that will cost $8,000, $2,000, and $8,000 respectively.The net working capital is $3,000 to start with, and is expected to grow at 5% per year.The annual fixed operating cost for balls and baskets will initially be $3,000 and is expected to grow at 5% per year.The fixed costs of leasing the land and its upkeep will be $53,000 per year.The above is an example of:

• A)debt financing.
• B)capital budgeting.
• C)equity financing.
• D)trade credit.
• E)multilateral netting.

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Definitions:

Delivery

The process of conveying a product, service, or message to its intended recipients or target audience.

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A gathering of individuals who share common experiences, challenges, or conditions, providing mutual encouragement, comfort, and advice.

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Individuals who have experienced sexual assault or rape, often requiring specific support and resources for recovery.

Program Developer

An individual or professional who plans, develops, and implements programs or projects, typically aimed at addressing specific issues or achieving certain outcomes within a community or organization.