-Under NPV Evaluation and Assuming These Machines Are Mutually Exclusive,which

question 43

Multiple Choice

$\begin{array}{lrrr} &\text { Machine A } & \text { Machine B } & \text { Machine-C } \\&(\$ 20,000) & (\$ 30,000) & (\$ 40,000) \\& \text { Inflows } & \text { Inflows } & \text { Inflows } \\\text { year 1 } & \$ 10,000 & \$ 12,000 & \$-0- \\\text { year 2 } & 10,000 & 12,000 & 10,000 \\\text { year 3 } & 5,000 & 10,500 & 30,000 \\\text { year 4 } & 2,000 & 10,500 & 15,000 \\\text { year 5 } & -0- & -0- & 15,000\end{array}$
-Under NPV evaluation and assuming these machines are mutually exclusive,which machine(s) would Horne Robinson Inc.choose?

• A) Machine A
• B) Machine B
• C) Machine C
• D) Machine A and B

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Definitions:

Toll Station

A point at which drivers are charged a fee to use a bridge, road, or tunnel.

Standard Deviation

A metric showing the extent of deviation or scatter of data points, highlighting the distance of these points from the central value.

Probability

The likelihood or chance of a particular event happening, often expressed as a number between 0 and 1.

Sample Size

Sample size is the number of observations or elements chosen from a population for analysis, which can affect the accuracy and reliability of statistical results.