Briar Corp

question 104

Essay

Briar Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in cash flow of $200,000.The equipment will have an initial cost of $1,200,000 and have an 8-year life.The salvage value of the equipment is estimated to be $200,000.The hurdle rate is 8%.Ignore income taxes.Answer the following:
a.What is the accounting rate of return?
b.What is the payback period?
c.What is the net present value?
d.What would the net present value be with a 12% hurdle rate?
e.Based on the NPV calculations,in what range would the equipment's internal rate of return fall?

Acknowledge the importance of empirical evidence and data documentation in psychology.

Understand the role of personality psychologists and the development of predictive behavioral assessments.

Recognize behaviorism and other early fields in psychology that emphasized empirical evidence.

Understand how theoretical diversity and multiple perspectives contribute to a more comprehensive understanding of psychological phenomena.