A Company Is Planning to Purchase a Machine That Will

question 11

True/False

A company is planning to purchase a machine that will cost $24,000,have a 6-year life,and have no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.Total income over the life of the machine is estimated to be $12,000.The machine will generate net cash flows per year of $6,000.The average rate of return for the machine is 50%.

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Definitions:

Decision-Making Methods

are systematic techniques used to choose among alternatives and make informed choices.

Authority Decision

A decision made by the leader and then communicated to the group.

Leader After Receiving Information

The decision-making and action phase that a leader enters once they have been provided with relevant data or insights.

Transformational Leadership

Leadership that is inspirational and arouses extraordinary effort and performance.