The Management of Osborn Corporation Is Investigating an Investment in Equipment

question 106

Multiple Choice

The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is -$401,414. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.

• A) $48,170
• B) $50,177
• C) $80,800
• D) $401,414

Identify the advantages and disadvantages of working for corporations, law firms, and government agencies as paralegals.

Recognize the supervisory structure for paralegals working in corporations.

Describe the roles and responsibilities of paralegals in corporate settings.

Understand the benefits of working for government agencies and the nature of their work.

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Definitions:

Market Competitiveness

The level to which companies or products within a market contend with one another, often determined by the number of competitors, product differentiation, and market power.

Regulators

Authorities or agencies responsible for supervising and enforcing laws and standards within specific industries or areas to protect the public interest.

Equality of Wage Rates

A situation where individuals in similar roles and positions are paid the same wage regardless of differences such as gender, ethnicity, or age.

Involuntary Methods

Techniques or processes that are not chosen or controlled by individuals, often imposed by external circumstances or authorities.