$$\text { Reference: } 10 - 05$$ The Sawyer Company Has $80,000 to Invest and Is Considering

question 6

Multiple Choice

$$\text { Reference: } 10 - 05$$ The Sawyer Company has $80,000 to invest and is considering two different projects, X and Y. The following data are available on the projects: $$\begin{array} { | l | l | l | } \hline & \text { Project } X & \text { Project } Y \\\hline \text { Cost of equipment needed now } & \$ 80,000 & - \\\hline \text { Working capital requirement } & - & \$ 80,000 \\\hline \text { Annual cash operating inflows } & \$ 23,000 & \$ 18,000 \\\hline \text { Salvage value in 5 years } & \$ 6,000 & - \\\hline\end{array}$$ Both projects will have a useful life of 5 years; at the end of 5 years, the working capital will be released for use elsewhere. Sawyer's discount rate is 12%.
-A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. The payback period for this machine in years is closest to:

• A)40 years.
• B)10.7 years.
• C)0.27 years.
• D)3.75 years.

Comprehend the effects of mechanical stress on plant growth and the role of stress hormones.

Understand the concept of differentiated and undifferentiated marketing strategies.

Identify different types of marketing approaches and their applications.

Analyze the implications of marketing strategies on organizational structure and cost efficiency.

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Big Five Traits

A theory in psychology proposing five core aspects of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.