Cleaners, Inc $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 78

Multiple Choice

Cleaners, Inc.is considering purchasing equipment costing $30,000 with a 6-year useful life.The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its useful life with no salvage value.Cleaners, Inc.requires a 10% rate of return.What is the approximate net present value of this investment? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Present Value of an Annuity of } 1$
$\begin{array}{llcc}\underline{\text { Period }} &\underline{8 \%}&\underline{9 \%} & \underline{10 \%}&\underline{11 \%} &\underline{12 \%}& \underline{15 \%}\\6&4.623&4.486&4.355&4.231&4.111&3.784\end{array}$

• A)$13,800
• B)$1,792
• C)$886
• D)$2,748

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Definitions:

Myelination

The process of forming a myelin sheath around nerves, enabling faster electrical impulse transmission.

White Matter

The part of the nervous system consisting mainly of myelinated neurons' axons, responsible for transmitting impulses between different areas of the central nervous system.

Local Potential

A temporary, localized change in the resting potential of a neuron that makes it more likely or less likely to fire an action potential.

Threshold

The minimum level of stimulus intensity required to activate a neural response or trigger a physiological process.