Crayfry offers a discount on an extended warranty on its crayfrier when the warranty is purchased at the time the fryer is purchased. the warranty normally has a price of $25, but crayfry offers it for $20 when purchased along with a fryer. crayfry anticipates a 60% chance that a customer will purchase the extended warranty along with the fryer. assume crayfry sells to 1,000 fryers with the extended warranty discount offer. what is the total stand-alone selling price that crayfry would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 fryer contracts?
a.$0
b.$5,000
c.$3,000
d.$2,000

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?

Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?