Table 10 -1. Capital Budgeting Choices

question 83

Multiple Choice

Table 10 -1. Capital Budgeting Choices

-Refer to Table 10 -1. Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment. Glen calculated the net present value of each recommendation. Glen estimates that he will have no more than $150,000 to invest next year. Based on NPV, which of the following items should he purchase?

• A) 2, 3, & 7
• B) 1, 2, 3, & 4
• C) 1, 2, & 8
• D) 7 & 8

---

Definitions:

Eicosanoids

Bioactive lipid compounds derived from fatty acids, playing critical roles in inflammation, immunity, and as messengers in the central nervous system.

Prostaglandins

A group of lipid compounds that have diverse hormone-like effects, including mediating inflammation and pain.

Epinephrine

A hormone and neurotransmitter, also known as adrenaline, that increases heart rate, muscle strength, blood pressure, and sugar metabolism.

Intracellular Mediator

Substances, often proteins or second messengers, within cells that transduce signals leading to various cellular responses.