Grant Ltd Invested in a Machine That Has a 3-Year

question 49

Multiple Choice

Grant Ltd invested in a machine that has a 3-year useful life. The company's discount rate is 12%, and the net present value of the investment is $(573) . Annual cost savings are: year 1 $3,000; year 2 $4,000; and year 3 $5,000. Determine the original cost of the machine. Ignore income taxes.

• A) $9,500
• B) $12,000
• C) $8,500
• D) $10,000

---

Definitions:

Authoritarian Leadership

A leadership style characterized by individual control over all decisions with little input from group members.

Democratic Leadership

A leadership style in which the leader makes decisions based on the contribution and consensus of a group, promoting participation, equality, and shared responsibility among team members.

Maintenance Functions

Activities or roles within a group that are aimed at strengthening social cohesion, supporting emotional well-being, and ensuring group stability.

Task Functions

Specific actions or activities within a group that help to achieve the objective or complete the required work, focusing on productivity and progress.