Jackson & Sons Uses Packing Machines to Prepare Their Product

question 59

Multiple Choice

Jackson & Sons uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 4 years before it needs to be replaced. The operating cost per machine is
$6,000 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the
Required rate of return is 12%?

• A) $38,556
• B) $50,776
• C) $79,012
• D) $101,006
• E) $154,224

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Definitions:

Job Discrimination

The unfair or prejudicial treatment of individuals in employment because of characteristics such as race, gender, age, or religion.

First-class Citizenship

A status that entails full enjoyment of all rights and privileges afforded to members of a society, without any discrimination or limitation.

George Wallace

An American politician known for his pro-segregation attitudes during the 1960s, serving as the Governor of Alabama and running for U.S. president multiple times.

Mississippi Freedom Democratic Party

An American political party created in 1964 as a branch of the civil rights movement, aiming to challenge the legitimacy of the Mississippi Democratic Party, which upheld racial segregation.