The Tolar Corporation Has 400 Obsolete Desk Calculators That Are

question 418

Multiple Choice

The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.What is the financial advantage (disadvantage) to the company from upgrading the calculators?

• A) $8,800
• B) ($18,000)
• C) $20,000
• D) ($8,000)

Estimate the future value of annuities and single cash flows using appropriate interest rates.

Analyze and compare different savings and payment options to make informed financial decisions.

Calculate the cost required today to fund future financial obligations or desired financial goals.

Understand and calculate the value of perpetuities and growing perpetuities in financial management.

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Definitions:

Experimenter Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can potentially influence the results.

Social Desirability Bias

The propensity of survey participants to give answers they feel will be received well by others.

Sampling Bias

A statistical bias that occurs when the sample chosen for a study is not representative of the population from which it was drawn.

Biased Sample

A sample that does not accurately represent the population from which it was drawn, leading to potential biases in research or survey results.