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The Sisyphean Corporation Is Considering Investing in a New Cane

question 47

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 2000 canes in year 1. Sales are estimated to grow by 10% each year through year 3. The price per cane that Sisyphean will charge its customers is $17 each and is to remain constant. The canes have a cost per unit to manufacture of $8 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 2% of its annual sales in cash, 5% of its annual sales in accounts receivable, 10% of its annual sales in inventory, and 6% 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 second year for the Sisyphean Corporation's project is closest to ________.

Acknowledge the existence of generational similarities in values despite differences in their expression.

Understand the implications of cultural characteristics of different countries on business practices and employee behavior.

Understand the basic principles and techniques of active listening.

Differentiate between various therapeutic approaches (behavior, humanistic, cognitive, psychoanalytic).

Definitions:

Association for the Advancement of Social Work With Groups

An organization dedicated to promoting excellence in group social work practice, education, field instruction, research, and publication.

International Society of Group Psychotherapy

The International Society of Group Psychotherapy is an organization dedicated to the advancement, research, and practice of group psychotherapy.

Corrective Emotional Experiences

Therapeutic experiences designed to challenge and change unhelpful emotional responses or patterns by recreating the context in which they were learned.

Psychodynamic Therapy

A therapeutic approach focusing on understanding the influence of the unconscious mind on behaviors, drawing on psychoanalytic theories to uncover root causes of psychological distress.