Dexter Company Is Considering Purchasing Equipment $$\begin{array} { l l } \text { Year 1 } & \$ 120,000 \\\text { Year 2 } & \$ 200,000\end{array}$$

question 42

Multiple Choice

Dexter Company is considering purchasing equipment. The equipment will produce the following cash flows: $$\begin{array} { l l } \text { Year 1 } & \$ 120,000 \\\text { Year 2 } & \$ 200,000\end{array}$$ Dexter requires a minimum rate of return of 10%. What is the maximum price Dexter should pay for this equipment?

• A) $274381
• B) $165290
• C) $320000
• D) $160000

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Definitions:

Engorging

The process of being filled with blood, often used in the context of sexual arousal.

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, which negatively affect a person's health.

Compulsive Overeating

An eating disorder characterized by periods of uncontrollable, excessive eating beyond the point of feeling comfortably full.

Binge Eating

A pattern of disordered eating which consists of episodes of uncontrollably eating large quantities of food in a short period of time.