John and sally claussen are considering the purchase of a hardware store from john duggan. the claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. at the end of 20 years, they intend to sell the store for an estimated $400,000. the claussens will finance the investment with a variable rate mortgage. interest rates will increase twice during the 20-year life of the mortgage. accordingly, the claussens’ desired rate of return on this investment varies as follows:

while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.

Careers in designing, planning, managing, building and maintaining the built environment can be found in the following career cluster: a. agriculture, food & natural resources b. architecture & construction c. arts, audio-video technology & communications d. business, management & administration

Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.