(Ignore Income Taxes in This Problem

question 65

Multiple Choice

(Ignore income taxes in this problem.) In an effort to reduce costs,Pontic Manufacturing Corporation is considering an investment in equipment that will reduce defects.This equipment will cost $420,000,will have an estimated useful life of 10 years,and will have an estimated salvage value of $50,000 at the end of 10 years.The company's discount rate is 22%.What amount of cost savings will this equipment have to generate per year in each of the 10 years in order for it to be an acceptable project?

• A) $50,690 or more
• B) $41,315 or more
• C) $105,315 or more
• D) $94,316 or more

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Definitions:

Four Ps

A marketing model that encompasses Product, Price, Place, and Promotion, which are considered the core drivers of marketing strategies.

Marketing Mix

A blend of marketing variables typically categorized into four Ps: Product, Price, Place, and Promotion, used to achieve business objectives.

Target Markets

Segments of the consumer population that businesses aim to reach and influence through tailored marketing strategies.

Unpredictable

Lacking consistency or being difficult to forecast or anticipate due to changing variables or conditions.