Memphis Co is considering purchasing a machine for $83,200 that will increase cash inflows 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, at 10 percent, for the three years are 0.909, 0.826, and 0.751, respectively. Using the above information for

Memphis, the machine's net present value is
A) $21,800.
B) $(3,285).
C) $79,915.
D) $(4,286).


B

Business

You might also like to view...

Categorize each of the following activities into the expenditure, conversion or revenue cycles and identify the applicable subsystem

a. Preparing the weekly payroll for manufacturing personnel. b. Releasing raw materials for use in the manufacturing cycle. c. Recording the receipt of payment for goods sold. d. Recording the order placed by a customer. e. Ordering raw materials. f. Determining the amount of raw materials to order.

Business

Influence is a component of the implementation of power in ethical decision making. Which of the following is not an ethical use of influence?

a. Negotiating in an ethical manner b. Adjusting through mutual agreement the viewpoint of another c. Misleading others about your future intentions d. Using nonverbal methods to change the viewpoint through, for example, physical evidence

Business

Employer avoidance of trade unions via the use of paternalistic or sophisticated HRM practices is referred to as:

a. union suppression b. union substitution c. union antagonism d. union replacement

Business

A major factor in the need for increased cross-cultural awareness is ______.

A. increase of globalization B. environmental issues C. changes in civil rights D. government regulation

Business