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

question 127

Multiple Choice

Use the information below to answer the following question(s) .
Corky's Amusement Park is evaluating the purchase of a new game to be located on its Midway. Corky's has narrowed their choices down to two: the Wacky Water Race game and the Whack-A-Mole game. Financial data about the two choices follows.

-The net present value of the Whack-A-Mole game is closest to

• A) $2,424.
• B) ($2,424).
• C) $3,937.
• D) ($3,937).

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Definitions:

Full Costing

An accounting method that includes all direct and indirect costs in the price of a product or service.

Carrying Cost

The total costs associated with holding inventory or assets, including storage, insurance, and taxes.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive officers, legal and clerical salaries, and other general expenses.

Sales Taxes

Taxes imposed by governments on sales of goods and services, typically calculated as a percentage of the retail price paid by the consumer.