The Sisyphean Corporation Is Considering Investing in a New Cane

question 54

Multiple Choice

The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. The cane manufacturing machine will result in sales of 2500 canes in year 1. Sales are estimated to grow by 9% each year through year 3. The price per cane that Sisyphean will charge its customers is $16 each and is to remain constant. The canes have a cost per unit to manufacture of $10 each.
Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that the Sisyphean Corporation needs to hold 3% of its annual sales in cash, 5% of its annual sales in accounts receivable, 10% of its annual sales in inventory, and 5% of its annual sales in accounts payable. The firm is in the 35% tax bracket and has a cost of capital of 9%.
The required net working capital in the first year for the Sisyphean Corporation's project is closest to ________.

• A) $5200
• B) $5668
• C) -$2800
• D) $9200

Understand the basic concepts of network types and topologies.

Comprehend the process and significance of network authentication.

Identify and match different types of networks and their definitions.

Grasp the mechanisms of data transmission and collision prevention in networks.

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Definitions:

Message Packets

Units of data formatted for transmission across network systems, encapsulating the payload and control information for routing.

Multiplexed Data Backbone

A network architecture that allows multiple signals or data streams to be combined and transmitted over a common pathway, enhancing efficiency and reducing wiring complexity.

Transaction Speed

The rate at which transactions are processed, highly relevant in financial systems and computer networks for efficiency and user satisfaction.

K-baud

A unit of transmission speed equal to one thousand bits per second, often used in telecommunications.