Table 6.4 Mr.Lee Is Considering a Capacity Expansion for His Supermarket.The Annual

question 128

Multiple Choice

Table 6.4
Mr.Lee is considering a capacity expansion for his supermarket.The annual sales projected for the next five years follow.The current capacity is equivalent to $300,000 sales.Assume a 20 percent pretax profit margin.

-Using the information in Table 6.4,if Lee expands the capacity to an equivalent of $360,000 sales now (year 0) ,how much would pretax cash flow in year 5 increase because of this expansion?

• A)less than $7000
• B)more than $7000 but less than $10,000
• C)more than $10,000 but less than $13,000
• D)more than $13,000

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Definitions:

Hypertension

A medical condition in which the blood pressure in the arteries is persistently elevated, also known as high blood pressure.

Proper Functioning

The optimal operation or performance of systems, organs, or activities in any given entity or organism, leading to overall health and wellness.

Stroke

A medical condition characterized by the sudden loss of brain function due to a disruption in the blood supply to a part of the brain.

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart attacks, congestive heart failure, and other heart-related disorders.