(Ignore Income Taxes in This Problem

question 173

Multiple Choice

(Ignore income taxes in this problem.) Oriental Corporation has gathered the following data on a proposed investment project:
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
-The net present value of this investment would be:

• A) $(14,350)
• B) $107,250
• C) $77,200
• D) $200,000

Learn the stages of the personal selling process.

Understand the essential components and steps involved in sales plan formulation.

Recognize the significance and techniques of follow-up in the personal selling process.

Identify and differentiate between various sales objectives (output-related, input-related, behaviorally related, etc.).

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.

Allowance Method

A method in accounting that involves estimating the accounts that are uncollectible at the end of each period to account for bad debts.

Receivables

Amounts owed to a company by customers or other parties as a result of the company providing goods or services on credit.