Small boutique chooses to stock sizeable artwork

Assignment Help Financial Management

Reference no: EM131343877

A small boutique chooses to stock sizeable artwork and sculpture, which consumes a lot of floor and wall space in an already cramped store. The owners turned down candle makers and a specialty stationery company- both of of which are compact - in order to stock the artwork and sculpture. The consequences in cash flow following from the rejection of the candles and stationery is called _____

A. overhead cost

B.opportunity cost

C. sunk cost

D. direct cost

Reference no: EM131343877

Questions Cloud

What impact would your decision have on earnings per share : If you were the CEO of your organization and were faced with a cash-rich scenario, would you use the cash to issue dividends or buy back stock? What impact would your decision have on earnings per share? Justify and defend your choice with sound reas..

Increasing value of firm : If the board of directors of the firm where you were the CEO is calling for an increase in the value of the firm, what would you do to respond positively to that direction?

Important to address the value of non-operating assets : Is it important to address the value of non-operating assets in arriving at an estimate of the value of equity per share? Why? Offer an example?

How much wealth per share has been created : A new factory at Arcataa requires an initial outlay of $1 Million. Of this $1 Million, $400,000 Must be paid immediately and $200,000 will be paid at the end of each year for the next 3 years. Assume cash flows occure at year-end. At a 10 percent req..

Small boutique chooses to stock sizeable artwork : A small boutique chooses to stock sizeable artwork and sculpture, which consumes a lot of floor and wall space in an already cramped store. The owners turned down candle makers and a specialty stationery company- both of of which are compact - in ord..

Firm decides to invest in a new technology : A firm has bids from three different janitorial company, including the current contractor, to service its hotel chain. These options are BEST described as _________projects. A firm decides to invest in a new technology, even though they will lose mon..

Market values of the bond at that point in time : A 20-year 10% annual coupon bond has a par value of $1, 000. When you originally purchased this bond, the effective annual interest rate was 8%. Suppose that five years after purchase, the effective annual interest rate is 10.5%. What is the absolute..

Present value method-calculate the apv of the project : Gemini, Inc., an all-equity firm, is considering an investment of $1.76 million that will be depreciated according to the straight-line method over its four-year life. The project is expected to generate earnings before taxes and depreciation of $610..

Consider to be important reasons to rebalance your portfolio : Assume that you have looked at market data and determined that for the risk you are willing to accept, an acceptable bond portfolio can provide a yield to maturity of around 6.2%. What would you consider to be important reasons to rebalance your port..

User Account

All Pages