A Company Is Trying to Decide Which of Two New

question 71

Essay

A company is trying to decide which of two new product lines to introduce in the coming year.The company requires a 12% return on investment.The predicted revenue and cost data for each product line follows:
$\begin{array}{l}\begin{array}{lll}& \underline { \text { Product A } }& \underline { \text { Product B } }\\ \text { Unit sales } &25,000 & 20,000 \\ \text {Unit sales } &\$ 30 & \$ 30\\\\\text { Direct materials } & \$ 15,000 & \$ 8,000 \\\text { Direct labor } & \$ 120,000 & \$ 80,000 \\\text { Other cash operating expenses } & \$ 30,000 & \$ 25,000\\\\\text { New equipment costs } & \$ 2,500,000 & \$ 1,500,000 \\\text { Estimated useful life (no salvage) } & 5 \text { years } & 5 \text { years }\end{array}\end{array}$ The company has a 30% tax rate and it uses the straight-line depreciation method.The present value of an annuity of 1 for 5 years at 12% is 3.6048.Compute the net present value for each piece of equipment under each of the two product lines.Which, if either, of these two investments is acceptable?

Discuss the psychological impact of racism and cultural neglect on communities of color.

Explain the significance and examples of culture-specific syndromes.

Understand the concept of security interests and their perfection under the Uniform Commercial Code (UCC).

Differentiate between consumer goods and goods for business use in the context of secured transactions.

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Definitions:

Social Media

Digital platforms that allow users to create, share, or exchange information, ideas, and pictures/videos in virtual communities and networks.

Peers Influence

Refers to the impact that peers, or individuals within the same social group, can have on one’s attitudes, values, and behaviors.

Emerging Adulthood

A phase of life between adolescence and full-fledged adulthood, which encompasses late teens through early twenties, characterized by exploration and self-discovery.

Life Phase

A period or stage in the existence of an organism or entity, often marked by distinct characteristics or conditions.