Mock Test [15 Marks] 1. A business expansion project is expected to generate earnings before taxes (EBT) of $150,000 per year. The project has annual depreciation of $60,000, and the firm's tax rate is 28%. The project also requires annual insurance payments of $10,000, and the initial marketing expense was $50,000. Determine the project's net annual after-tax cash flow. Options: A) $133,200 B) $147,000 C) $158,000 D) $185.000 2. JKL Pharmaceuticals has a Return on Assets (ROA) of 9%, total sales of $900, and total assets of $1,000. Additionally, they recently launched a marketing campaign costing $200,000. What is JKL Pharmaceuticals' profit margin? Options: a) 8% b) 9% c) 10% d) 7.5% 3. Case Study: Supply Chain Disruption in a Globalized Market Global Electronics, a manufacturer of consumer electronics, relies heavily on international suppliers for key components. Recently, due to political tensions and natural disasters, the company experienced significant disruptions in its supply chain, leading to production delays and increased costs. As a result, Global Electronics is struggling to meet customer demand and maintain profitability. The leadership is considering diversifying its supply chain or bringing some manufacturing processes in-house to mitigate these risks. Question; How can Global Electronics adapt its supply chain strategy to reduce the impact of global disruptions while maintaining cost efficiency? Evaluate the potential benefits and challenges of diversifying suppliers. reshoring manufacturing, and investing in technology to improve supply chain resilience. What trade-offs will the company need to consider, and how can it ensure a balance between operational flexibility, cost management, and long-term growth? Propose a strategy that addresses both immediate concerns and future risks. Important Notice to Students Dear Students, This is a strict warning not to use AI tools or copy answers for your mock test questions. If we find that any answers are generated by AI or copied from others, those students will fail the exam. Please make sure to answer the questions yourself. We believe in your ability to do well! Best of luck!

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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Ignore insurance payment & marketing expenses in calculation

Mock Test
[15 Marks]
1. A business expansion project is expected to generate earnings before taxes (EBT) of
$150,000 per year. The project has annual depreciation of $60,000, and the firm's tax rate
is 28%. The project also requires annual insurance payments of $10,000, and the initial
marketing expense was $50,000. Determine the project's net annual after-tax cash flow.
Options:
A) $133,200
B) $147,000
C) $158,000
D) $185.000
2. JKL Pharmaceuticals has a Return on Assets (ROA) of 9%, total sales of $900, and
total assets of $1,000. Additionally, they recently launched a marketing campaign
costing $200,000. What is JKL Pharmaceuticals' profit margin?
Options:
a) 8%
b) 9%
c) 10%
d) 7.5%
3. Case Study: Supply Chain Disruption in a Globalized Market
Global Electronics, a manufacturer of consumer electronics, relies heavily on international
suppliers for key components. Recently, due to political tensions and natural disasters, the
company experienced significant disruptions in its supply chain, leading to production delays
and increased costs. As a result, Global Electronics is struggling to meet customer demand and
maintain profitability. The leadership is considering diversifying its supply chain or bringing
some manufacturing processes in-house to mitigate these risks.
Question;
How can Global Electronics adapt its supply chain strategy to reduce the impact of global
disruptions while maintaining cost efficiency? Evaluate the potential benefits and challenges of
diversifying suppliers. reshoring manufacturing, and investing in technology to improve supply
chain resilience. What trade-offs will the company need to consider, and how can it ensure a
balance between operational flexibility, cost management, and long-term growth? Propose a
strategy that addresses both immediate concerns and future risks.
Important Notice to Students
Dear Students,
This is a strict warning not to use AI tools or copy answers for your mock test questions. If we
find that any answers are generated by AI or copied from others, those students will fail the
exam.
Please make sure to answer the questions yourself. We believe in your ability to do well!
Best of luck!
Transcribed Image Text:Mock Test [15 Marks] 1. A business expansion project is expected to generate earnings before taxes (EBT) of $150,000 per year. The project has annual depreciation of $60,000, and the firm's tax rate is 28%. The project also requires annual insurance payments of $10,000, and the initial marketing expense was $50,000. Determine the project's net annual after-tax cash flow. Options: A) $133,200 B) $147,000 C) $158,000 D) $185.000 2. JKL Pharmaceuticals has a Return on Assets (ROA) of 9%, total sales of $900, and total assets of $1,000. Additionally, they recently launched a marketing campaign costing $200,000. What is JKL Pharmaceuticals' profit margin? Options: a) 8% b) 9% c) 10% d) 7.5% 3. Case Study: Supply Chain Disruption in a Globalized Market Global Electronics, a manufacturer of consumer electronics, relies heavily on international suppliers for key components. Recently, due to political tensions and natural disasters, the company experienced significant disruptions in its supply chain, leading to production delays and increased costs. As a result, Global Electronics is struggling to meet customer demand and maintain profitability. The leadership is considering diversifying its supply chain or bringing some manufacturing processes in-house to mitigate these risks. Question; How can Global Electronics adapt its supply chain strategy to reduce the impact of global disruptions while maintaining cost efficiency? Evaluate the potential benefits and challenges of diversifying suppliers. reshoring manufacturing, and investing in technology to improve supply chain resilience. What trade-offs will the company need to consider, and how can it ensure a balance between operational flexibility, cost management, and long-term growth? Propose a strategy that addresses both immediate concerns and future risks. Important Notice to Students Dear Students, This is a strict warning not to use AI tools or copy answers for your mock test questions. If we find that any answers are generated by AI or copied from others, those students will fail the exam. Please make sure to answer the questions yourself. We believe in your ability to do well! Best of luck!
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