A New Machine Tool Is Expected to Generate Receipts as Follows

question 19

Essay

A new machine tool is expected to generate receipts as follows: $5,000 in year one; $3,000 in year two, nothing in the next year, and $2,000 in the fourth year. At an interest rate of 6%, what is the net present value of these receipts? Is this a better net present value than $2,500 each year over four years? Explain.

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Definitions:

Ethnicity

A categorization of people based on shared cultural, linguistic, or ancestral heritage.

Race

Is a social construct used to categorize humans based on physical features, ancestry, and genetics, often leading to systemic disparities and injustices.

Biological Attributes

The inherent characteristics and traits of an organism, including genetic, physiological, and physical features.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups.