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NEW QUESTION: 1
In order to increase production capacity, Gunning Industries is considering replacing an existing
production machine with a new technologically improved machine effective January 1, 1997. The
following information is being considered by Gunning Industries.
. The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would
cost an additional $30,000.
. The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit.
Incremental operating costs are comprised of $30 per unit in variable costs and total fixed costs of
$ 40,000 per year.
. The investment in the new machine will require an immediate increase in working capital of $35,000.
. Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new
machine has an estimated useful life of five years and zero salvage value.
. Gunning is subject to a 40 percent corporate income tax rate.
Gunning uses the net present value method to analyze investments and will employ the following factors
and rates.

The overall discounted cash flow impact of Gunning Industries' working capital investment for the new
production machine would be:
A. $(10,680)
B. $(13,265)
C. $(35,000)
D. $(7,959)
Answer: B
Explanation:
Choice "c" is correct. $(13,265) overall discounted cash flow impact of working capital investment.


NEW QUESTION: 2
Which of the following are putaway strategies in EWM?
There are 4 correct answers to this question.
Response:
A. Manual
B. Nextemptybin
C. Open storage
D. Bulk
E. FIFO
F. Pallet
Answer: A,B,D,F

NEW QUESTION: 3
Which definition of customer success is true?
A. It is a measure of the Net Promoter Score that results from a disciplined engagement of sales, services, marketing, and customer success teams working seamlessly to deliver a positive experience for the customer.
B. It is the business methodology of ensuring that customers achieve their expected and unexpected outcomes while using your product or service.
C. It is the business methodology of ensuring that customers are always on the latest software releases and subscription contracts so that they can focus on the core business activities that make them successful.
D. It is a business methodology for increasing recurring revenues by minimizing the risk of churn while driving adoption and expansion.
Answer: A