Jensen's Shipping Wants to Expand as Soon as It Can

question 1

Multiple Choice

Jensen's Shipping wants to expand as soon as it can save $112 million.Towards that goal,the firm started saving 3 years ago and currently has $38.2 million saved.Starting today,the firm will add $15,000 a month to this savings account.The rate of return is 7.1 percent,compounded monthly.How long will it be from now before the company can expand?

• A)14.60 years
• B)16.52 years
• C)15.67 years
• D)16.08 years
• E)15.39 years

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Definitions:

Net Realisable Value

The estimated selling price of goods, minus the costs of their sale or completion.

Write Down Reversal

The process of reversing a previously recorded write down, often due to an increase in the asset's value or a correction of the original value assessed.

Disclosure Requirements

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Inventories Valuation

The process of determining the monetary value of a company's stock, under specific cost flow assumptions.