A New, More Efficient Machine Will Last Four Years and Allow

question 29

Multiple Choice

A new, more efficient machine will last four years and allow inventory levels to decrease by $100,000 during its life.At a cost of capital of 13 percent, how does the net working capital change affect the project's NPV?

• A)NPV increases by $38,668
• B)NPV increases by $61,330
• C)NPV increases by $100,000
• D)NPV increases by $138,668

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Definitions:

Mirror Neurons

Neurons that fire when an individual performs an action or when they observe someone else performing the same action, implicated in empathy and learning by imitation.

Cognitive Maps

Mental representations of physical spaces or environments, helping individuals navigate and understand spatial relationships.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Operant Conditioning

A learning technique where the dynamism of a behavior is regulated by the offering of incentives or the implementation of correctives.