Memphis Co is going to purchase a machine for $83,200 that will increase cash flows by $40,000 in the first year, $30,000 the second year, and $25,000 the third year. The machine will have no residual value. The minimum rate of return is 10 percent. The present value factors for the three years are 0.909, 0.826, and 0.751, respectively. The machine's net present value is
a. $21,800.
b. ($3,285).
c. $79,915.
d. ($4,286).
B
You might also like to view...
The difference between the company's performance index and its cost of purchase index gives us the ________
A) market share index B) share potential index C) customer value index D) profitability index E) market development index
When comparing low Machs and high Machs, which of the following statements is true?
A. Low Machs do better than high Machs in distributive negotiation. B. When negotiating with a high Mach other party, low Mach negotiators make fewer offers and are less effective negotiators than when negotiating with another low Mach. C. High Machs change their negotiation style as a function of the Machiavellianism of the other negotiator. D. Low Mach negotiators do not change their negotiation style as a function of the other party's Machiavellianism.
Which of the following has not been a tactic used by "alt-labor"?
A. Organizing and gaining recognition of new bargaining units. B. Filing lawsuits against employers and governmental bodies. C. One-day strikes and protests. D. Lobbying government officials.
What does the Substitutes for Leadership Model propose and when might it be utilized?
What will be an ideal response?