Kerwin Company Is Considering a Purchase of Equipment That Costs

question 5

Multiple Choice

Kerwin Company is considering a purchase of equipment that costs $50,000.If the useful life is expected to be 5 years and Kerwin's required rate of return is 12%,what is the minimum annual cash inflow that the equipment must offer for the investment to be acceptable? (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.Do not round your intermediate calculations.Round your final answer to the nearest dollar.)

• A) $8,929
• B) $13,870
• C) $12,076
• D) $17,623

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Definitions:

Two-factor Theory

Describes emotional experience as a combination of two components: physical arousal and a cognitive label applied to explain the arousal.

Mirror-image Perceptions

A term referring to the mutual views often held by conflicting people, where each side sees itself as ethical and peaceful and views the other as evil and aggressive.

Physical Attractiveness

How much a person's physical attributes are regarded as attractive or pleasing to the eye.

Self-esteem

An individual's perception of their self-worth or esteem.