Answer the following questions using the information below:
Moises, Black, Elderberry and Associates are in the process of evaluating its new client services for the business consulting division.

-What is the estimated life-cycle operating income for the first two years?
A)$(740,000)
B)$(700,000)
C)$1,600,000
D)$5,600,000

Question

Answer the following questions using the information below:
Moises, Black, Elderberry and Associates are in the process of evaluating its new client services for the business consulting division.
 
-What is the estimated life-cycle operating income for the first two years?
A)$(740,000) 
B)$(700,000) 
C)$1,600,000 
D)$5,600,000

Quizplus · Accepted Answer

The estimated life-cycle operating income for the first two years is a negative cash flow of $(740,000). Therefore, the best choice would be to either not pursue the new client services or adjust the strategy to reduce costs and increase revenue.

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