The Receiving Department of Powen Has Three Activities: Unloading, Counting

question 109

Multiple Choice

The receiving department of Powen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:
$$\begin{array}{l}\text { Percentage of Time }\\\begin{array} { l c } \text { Activity } & \text { on Each Activity } \\\text { Unloading } & 25 \% \\\text { Counting } & 40 \% \\\text { Inspecting } & 35 \%\end{array}\end{array}$$
-Refer to the Figure.What is the cost of counting?

• A)$50,500
• B)$52,000
• C)$54,000
• D)$56,000

Comprehend the usage and implications of decision tree analysis in evaluating capital budgeting projects.

Understand the significance of correct discount rates in NPV calculations and the impact of risk adjustment.

Grasp the methodology of assigning value to real options and its implications in project evaluation.

Calculate the risk-adjusted NPV of projects using appropriate discount rates and compare different project outcomes.

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Definitions:

Exocrine

Referring to glands that release their secretions through ducts to the external environment or into body cavities.

Apocrine

A type of gland that releases its secretions by shedding portions of its cells, often associated with scent glands in mammals.

Endocrine

Relating to glands that secrete hormones directly into the bloodstream, influencing various bodily functions.

Exocrine

Pertains to glands that release their secretions through ducts onto an epithelial surface, such as sweat glands.