Braxton Manufacturing Is Considering the Purchase of New Computerized Equipment

question 30

Multiple Choice

Braxton Manufacturing is considering the purchase of new computerized equipment.The machine costs $85,000 and would generate $22,000 in annual cost savings over its 5-year life.At the end of 5 years, the equipment would have a $5,000 salvage value.Braxton's required rate of return is 12%.Using the interest tables, the machine's net present value is nearest

• A)($2,857).
• B)($5,694).
• C)$79,306.
• D)$110,000.

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Definitions:

Internal Accommodation

The process by which cognitive structures are adjusted to incorporate new information.

Mirrored Reflection

The process of closely examining one's own thoughts, feelings, or actions, as if reflecting them in a mirror.

Unique Assimilation

The process of integrating new information into existing cognitive schemas in a way that is special to the individual.

Association Areas

Regions of the brain that integrate and process information from the sensory and motor areas to perform complex cognitive tasks.