7. A sports nutrition company is examining whether a new high-performance sports drink should be added to its product line. A preliminary feasibility analysis indicated that the company would need to invest $17.5 million in a new manufacturing facility to produce and package the product. A financial analysis using sales and cost data supplied by marketing and production personnel indicated that the net cash flow (cash inflows minus cash outflows) would be $6.1 million in the first year of commercialization, $7.4 million in year 2, $7.0 million in year 3, and $5.5 million in year 4
a. Should the company proceed with development of the product if the
discount rate is 20 percent? Why?
b. Does the decision to proceed with development of the product
change if the discount rate is 15 percent? Why?

25. kerry company plans to sell 200,000 units of finished product in july and anticipates a growth rate in sales of 5% per month. the desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. there are 150,000 finished units in inventory on june 30. kerry company's production requirement in units of finished product for the three-month period ending september 30 is: a. 712,025 units b. 630,500 units c. 664,000 units d. 665,720 units

For each example identify the most appropriate ctso

1. descriptive statistics quickly describe large amounts of data can predict future stock returns with surprising accuracy statisticians understand non-numeric information, like colors refer mainly to patterns that can be found in data 2. a 15% return on a stock means that 15% of the original purchase price of the stock returns to the seller at the end of the year 15% of the people who purchased the stock will see a return the stock is worth 15% more at the end of the year than at the beginning the stock has lost 15% of its value since it was originally sold 3. a stock purchased on january 1 cost $4.35 per share. the same stock, sold on december 31 of the same year, brought in $4.75 per share. what was the approximate return on this stock? 0.09% 109% 1.09% 9% 4. a stock sells for $6.99 on december 31, providing the seller with a 6% annual return. what was the price of the stock at the beginning of the year? $6.59 $1.16 $7.42 $5.84