In Step Video Is Considering Expanding Its Video Rental Library

question 9

Multiple Choice

In Step Video is considering expanding its video rental library to 8,000 tapes.The purchase price of the additional videos will be $80,000 and the shipping cost is another $4,000.To house the tapes, 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:

Kenya

A country in East Africa known for its diverse landscapes, wildlife reserves, and as a leading economy in the region.

Observational Study

A research method where the researcher observes ongoing behavior without intervening directly with the subjects.

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The process of consistently and methodically documenting information or data according to a predetermined system.

Nursery School

An educational institution for children too young for elementary school, typically from ages three to five, focusing on play and learning activities.