What dollar amount of suits should be purchased in november

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Q1. Wild West Fashion expects the total costs of goods sold to be $31,000 in November and $61,000 in December for one of its young adult suits. Management also wants to have on hand at the end of each month 20 percent of the expected total cost of sales for the following month. What dollar amount of suits should be purchased in November?

Q2. GuSont Inc. was considering an investment in the following project:

Required initial investment $830,000

Net annual after-tax cash inflow $163,000

Annual depreciation expense (($830,000 - $169,000)/10 years)$66,100

Estimated salvage value $169,000

Life of the project in years 10

Assume that cash inflows occur evenly throughout the year. The estimated payback period in years (rounded to one decimal place) for the proposed project is?

Reference no: EM132932930

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