Question #8 Multiple Choice
The sales and marketing teams of Company XYZ have just presented a proposal to manufacture a new product. The purchasing agent
has located domestic suppliers for most of the raw materials and components. The engineers have created a new process that shaves off
several steps. The new product has the potential to make cars more fuel-efficient and safer, but the new process calls for a synthetic
material that is banned in Europe and China. What aspects of the proposal are most likely to have a positive impact on the company's
green initiatives?
O using synthetic materials
simplifying the process
O selecting domestic suppliers
O improving mileage

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.