The Management of Retz Corporation Is Considering the Purchase of a New

question 32

Multiple Choice

The management of Retz Corporation is considering the purchase of a new machine costing $500,000.The company's desired rate of return is 10%.The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively.In addition to the foregoing information, use the following data in determining the acceptability in this situation: $$\begin{array} { c c c } \text { Year } & \text { Income from Operations } & \text { Net Cash Flow } \\\hline 1 & \$ 100,000 & \$ 200,000 \\2 & 80,000 & 170,000 \\3 & 50,000 & 130,000 \\4 & 10,000 & 80,000 \\5 & 10,000 & 80,000\end{array}$$ ? The present value index for this investment is:

• A) 1.30.
• B) 0.95.
• C) 1.05.
• D) 0.70.

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Definitions:

Legitimate Power

Power that is recognized as deserved or earned, often stemming from a person's position, role, or through the respect they command.

Person-Focused Leaders

Leaders who prioritize the development, well-being, and personal interests of their team members in their leadership approach.

Task-Oriented Leaders

are leaders who focus primarily on the completion of tasks and the achievement of objectives, often emphasizing efficiency and role clarity.

Participatory

Involving or allowing participation of members within a process or system, often emphasizing inclusivity and collaboration.