Leopold Ltd Has Invested in a Machine with a Cost

question 84

Multiple Choice

Leopold Ltd has invested in a machine with a cost of $37,164 and annual cost savings of $6,000. The discount rate is 8%, and the machine's internal rate of return is 12%. Ignore income taxes. The estimated life of the machine is:

• A) 12 years
• B) 8 years
• C) 6.2 years
• D) Cannot be determined

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Definitions:

Benefits

Advantages or positive outcomes that contribute to the well-being or interest of individuals or organizations.

Critical-Incident Technique

A method used in management and psychology to analyze specific incidents that significantly contribute to an outcome, to understand better how to encourage positive or mitigate negative events.

Ineffective Job Behaviour

Actions or conduct by an employee that do not lead to the desired performance or outcomes in their role.

Supervisor

An individual who oversees and directs the work of other employees, ensuring tasks are completed efficiently and standards are met.