Elkins Co Is Considering an Investment in Equipment for a New

question 45

Multiple Choice

Elkins Co. is considering an investment in equipment for a new product line with a cost of $48,625, a terminal value of $6,283, and a useful life of 5 years. The project will provide an annual contribution margin of $12,500. The required rate of return is 12%. Ignore income taxes. This project is:

• A) Unacceptable, because it earns a rate below 12%.
• B) Acceptable, because it has a positive NPV.
• C) Unacceptable, because it has a 0 NPV.
• D) Acceptable, because it earns exactly 12%.

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Criminal Justice System

An organization of institutions and practices responsible for preventing, detecting, and punishing crime to maintain social control and deliver justice.

Social Inequality

Refers to the unequal distribution of resources, opportunities, and privileges among people in a society.

Deviance

Actions or behaviors that violate societal norms, which can range from minor breaches of etiquette to serious violations of law.

Socioeconomic Classes

Categories of people based on their economic status, often determined by income, wealth, occupation, and education.