Use the Information Below to Answer the Following Question(s)

question 150

Multiple Choice

Use the information below to answer the following question(s) .Hawkeye Cleaners has been considering the purchase of an industrial dry-cleaning machine.The existing machine is operable for three more years and will have a zero disposal price.If the machine is disposed of now, it may be sold for $30,000.The new machine will cost $200,000, an additional cash investment in working capital of $60,000 will be required and will be returned at the end of the project.The machine is expected to last 3 years and has an estimated disposal value at that time of $20,000.The new machine will reduce the average amount of time required to wash clothing and will decrease labour costs.The investment is expected to net $50,000 in additional cash inflows during the year of acquisition and $150,000 each additional year of use.These cash flows will generally occur throughout the year and are recognized at the end of each year.Income taxes are not considered in this problem.
-Shirt Company wants to purchase a new cutting machine for its sewing plant.The investment is expected to generate annual cash inflows of $300,000 recognized at the end of each year.The required rate of return is 12 percent and the new machine is expected to last for 4 years.What is the maximum dollar amount Shirt Company would be willing to spend for the machine?

• A)$507,000
• B)$720,600
• C)$791,740
• D)$911,205
• E)$957,600

Acknowledge the comparative profitability of long-term versus short-term customer relationships.

Identify key components necessary for calculating customer lifetime value.

Comprehend the significance of customer acquisition and retention costs.

Understand the application of the customer portfolio matrix in categorizing customers.

---

Definitions:

Participant Observation

A research method used in social sciences where the researcher immerses themselves in the community or group being studied to observe behaviors and interactions directly.

Sociologists

Scientists who study societies, including patterns of social relationships, social interaction, and culture.

Social Milieu

The social environment or setting in which an individual lives or operates, consisting of social norms, values, and practices.

Long-Form Census

is a detailed questionnaire used by governments to gather comprehensive demographic, economic, and social data about the population.