Coffer CoIs Analyzing Two Projects for the Future If the Company Is Using the Payback Period Method and One

question 104

Multiple Choice

Coffer Co.is analyzing two projects for the future.Assume that only one project can be selected. $$\begin{array} { c r r } & \frac { \text { Project X } } { } & \frac { \text { Project Y } } { } \\\text { Cost of machine } & \$ 68,000 & \$ 60,000 \\\text { Net cash flow: } & & \\\text { Year 1 } & 24,000 & 4,000 \\\text { Year 2 } & 24,000 & 26,000 \\\text { Year 3 } & 24,000 & 26,000 \\\text { Year 4 } & 0 & 20,000\end{array}$$ If the company is using the payback period method and it requires a payback of three years or less,which project should be selected?

• A)Project Y.
• B)Project X.
• C)Both X and Y are acceptable projects.
• D)Neither X nor Y is an acceptable project.
• E)Project Y because it has a lower initial investment.

Identify components of the statement of owner's equity and the process for its preparation.

Be familiar with fundamental accounting system elements such as the chart of accounts, journal, and ledger.

Understand the structure and purpose of the classified balance sheet and its components.

Understand the sequence in which financial statements should be prepared.

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Definitions:

Psychological Objections

Refers to the mental barriers or reservations potential customers might have against purchasing a product or service, often based on emotional factors or personal biases.

Direct Denial

A straightforward refusal or rejection of a request, claim, or offer without providing an alternative or compromise.

Handle Objections

Refers to the process by which salespeople overcome customer concerns or hesitations regarding a product or service.

No-Need Objection

An objection in which the prospect declares he or she does not need the product and implies the end of the selling effort, but which may actually be either a hidden or a stalling objection.