Phoxco Is Considering Automating Its Production Line at a Cost

question 2

Multiple Choice

Phoxco is considering automating its production line at a cost of $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 for 14 years. The firm requires a 20% rate of return. Ignore income taxes.
The net present value for this investment is:

• A) Positive
• B) Zero
• C) Negative
• D) Cannot be determined

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Definitions:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, involved in complex behaviors such as decision making, planning, and moderating social behavior.

Memory Attribute

Characteristics or features of memory, such as duration, capacity, and encoding processes, that differentiate various types of memory.

Affective Memory Attributes

Characteristics of memories that are associated with emotions, influencing how memories are processed and recalled.

Distinctiveness

The quality of being notably different or unique, often used in the context of stimuli in psychology to describe how easily an item stands out from others, facilitating learning and memory.