Tuesday
September 16, 2014

Homework Help: finance

Posted by savin1 on Saturday, April 16, 2011 at 2:11pm.

Shamroll inc. is a household products frim that is considering developing a new detergent. In evaluationg whether to go ahead with the new detergent project, which of the following statements is most correct?

A) The company will produce the detergent in a building that they already own. The cost of the building is therefore zero and should be exluded from the analysis

B) THe company will need to use some equipment that it could have leased to another company. This equipment lease could have generated $200,000 per year in afte-tax income. THe $2,000 should be excluded because the equipment can no longer be leased

C) The company will need to hire 10 new workers whose salaries and benefits will total $400,000 per year. Labor costs are nt part of capital budgeting and should be excluded.

D) The company will produce the detergent in a building that is renovated 2 years ago for $300,000. The $300,000 should be excluded from the analysis.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

St - A manufacturer is interested in determining whether it can claim that the ...
College Stats - A machine fills 64 ounce detergent jugs. It is known that the ...
science (important project help!) - im working on a science project which is ...
Math - My class is mixing 3 1/5 batches of paint. If one batch calls for calls ...
math - Laundry- detergent $7.99 T Flower- bouquet $3.99 T, A grocery store ...
Finance - your company, Beta Corporation, is considering a new project which you...
math - 1/8 of a small box of detergent cleans 1 load of laundry. How many loads ...
Finance - 20. TexMex Products is considering a new salsa whose data are shown ...
math - Please help!pam is mixing 3 1/5 batches of paint.if one batch calls for 2...
Stem and Leaf Probability - Please advise-Thanks Given below is the stem-and-...

Search
Members