Keltner Enterprises Is Considering Investing in a New Packing Machine

question 120

Multiple Choice

Keltner Enterprises is considering investing in a new packing machine.The new machine will provide annual cash operating inflows of $12,300 for 5 years.The cost of the machine is $42,300 and it can be sold at the end of its 5-year useful life for $6,800.Keltner's required rate of return is 10%.What is the machine's net present value?

• A) ($105)
• B)$13,211
• C)$8,549
• D)$15,278

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Definitions:

Hereditary Transmission

The process by which genetic information is passed from parents to their offspring, determining inherited traits.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, influencing how organisms develop and function.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.

Fertilisation

The fusion of gametes (egg and sperm) to initiate the development of a new individual organism.