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

question 162

Multiple Choice

Use the information below to answer the following question(s) .
Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two: the B14 Model and the F54 Model. Financial data about the two choices follows:

-The net present value of the B14 Model is closest to

• A) $17,395 positive.
• B) $21,930 negative.
• C) $38,455 positive.
• D) $358,455 positive.

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Definitions:

Competitive Rivalry

The ongoing, competitive struggle between companies in the same industry or market to win over customers, increase market share, and achieve dominant status.

Substitute Products

Goods or services that can be used in place of each other, offering consumers an alternative choice.

Economies Of Scale

Refers to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Industrial Standards

Established norms and requirements regarding technical specifications and safety measures that products or processes should meet within an industry.