Kerwin Company Is Considering Purchase of Equipment That Costs $50,000

question 54

Multiple Choice

Kerwin Company is considering purchase of equipment that costs $50,000.If the useful life is expected to be 5 years and Crown's required rate of return is 12%,what is the minimum annual cash inflow that the equipment must offer for the investment to be acceptable? (Do not round your intermediate calculations.Round your final answer to the nearest dollar. )

• A) $8,929
• B) $13,870
• C) $12,076
• D) $17,623

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Definitions:

Promotion Program

A comprehensive strategy incorporating various promotional tools and activities to boost market presence, customer engagement, and sales performance.

Four Ws

A common framework in planning that refers to Who, What, Where, and Why, used to gather comprehensive information on a topic.

Push Strategies

Marketing tactics aimed at getting products in front of the customer, often through distribution channels, to increase demand.

Pull Strategies

Marketing techniques aimed at increasing demand for a product among consumers, encouraging retailers to stock the product in response.