Reference no: EM132507851

Question 1: A company sell pretzels for $1.50/bag. Their February ending inventory was $1600. marketing prepares the following forecast:

January 15,000 bags

Febuary 12,000 bags

March 16,000 bags

Total 43,000 bags

Projected sales for April 13,000 bags. Try to maintain 10% of the next month's forecasted sales in inventory. What is the projected for march?

a) 14,800

b) 16,000

c) 15,700

d)16,500

e) can't be determined from the data provided.

Question 2: what is the sales budget for January?

Question 3: initial cash cost of investment $75,000

Estimated annual cash savings $18,000

Predicted residual value at the end of life $3,000

Estimated useful life 2 years

Cost of capital 12%

If Present Value factor of an annuity of $1 at 12% and 7 years is 4.564 and the present value factor of a payment of $1 at 12% and 7 years is 0.452. what is the total present value of the estimated cash inflow?

A) 4,167 years

B) $82,152

C) $1,356

D) $83,508

E) $8,508