Robertson Is Considering Automating Its Production Line at a Cost

question 87

Multiple Choice

Robertson is considering automating its production line at a cost of $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 for 14 years. The firm requires a 20% rate of return. Ignore income taxes. The net present value for this investment is

• A) Cannot be determined
• B) Positive
• C) Zero
• D) Negative

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Definitions:

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The action of removing a data entry from a database or digital record, permanently erasing its information.

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A search tool in Microsoft Office applications that allows users to query how to perform tasks, finding features and commands.

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