Bloomfield Tires Has Assigned a Discount Rate of 14

question 65

Multiple Choice

Bloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300,$128,700,and $89,500 for Years 1 to 3,respectively.What is the net present value of this project?

• A)$1,308.16
• B)-$8,344.40
• C)-$5,934.79
• D)$5,127.10
• E)-$4,899.03

---

Definitions:

Stockouts

Occur when an item is not in stock and unavailable for sale at the moment, potentially causing lost sales and customer dissatisfaction.

New-Product Development

The process of designing, creating, and bringing a new product or service to the market.

Cross-Docking

A logistics procedure where products received at a warehouse or distribution center are not stored but instead directly transferred from one truck to another, minimizing storage time and costs.

In-Process Inventory

Items or materials that are currently being worked on or processed in a manufacturing or production environment.