Dexter, Inc

question 6

Multiple Choice

Dexter, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows: The average amount of capital invested in the laptop product line is $900,000 and Dexter's target return on investment is 18%.
What price must Dexter charge if the company uses cost-plus pricing based on total cost?

• A) $868.
• B) $900.
• C) $1,000.
• D) $1,192.
• E) None of the other answers are correct.

Calculate the Net Present Value (NPV) of investment opportunities accounting for inflation and risk.

Assess the cost of capital for firms, including the influence of debt and equity.

Identify financial decision-making criteria for consumers and businesses.

Application of financial concepts to real-world scenarios, including personal and business cases.

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Definitions:

Positively

In a manner that expresses or implies affirmation, optimism, or a beneficial quality.

Negatively

In a manner that expresses or implies a negative response, pessimism, or detrimental quality.

Affective Evaluation

The process of assessing something based on feelings, emotions, or moods associated with the experience or expectation of it, rather than objective or rational assessment.

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor, shaping how individuals think and behave.