The Shoe Box Is Considering Adding a New Line of Winter

question 95

Multiple Choice

The Shoe Box is considering adding a new line of winter footwear to its product lineup.Which of the following are relevant cash flows for this project?
I.Decreased revenue from products currently being offered if this new footwear is added to the lineup
II.Revenue from the new line of footwear
III.Money spent to date looking for a new product line to add to the store's offerings
IV.Cost of new counters to display the new line of footwear

• A)I and IV only
• B)II and IV only
• C)II and III only
• D)I, II, and IV only
• E)II, III, and IV only

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Unemployment and Inflation

Two key indicators in economics, where unemployment measures the percentage of the workforce that is jobless, and inflation indicates the rate at which the general level of prices for goods and services is rising.

Cost/Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives, used to determine options that provide the best approach to achieve benefits while preserving savings.

Expected Benefits

The anticipated advantages or positive outcomes that are predicted to result from a particular action or policy.