-Under NPV Evaluation and Assuming These Machines Are Mutually Exclusive,which

question 43

Multiple Choice

$\begin{array}{lrrr} &\text { Machine A } & \text { Machine B } & \text { Machine-C } \\&(\$ 20,000) & (\$ 30,000) & (\$ 40,000) \\& \text { Inflows } & \text { Inflows } & \text { Inflows } \\\text { year 1 } & \$ 10,000 & \$ 12,000 & \$-0- \\\text { year 2 } & 10,000 & 12,000 & 10,000 \\\text { year 3 } & 5,000 & 10,500 & 30,000 \\\text { year 4 } & 2,000 & 10,500 & 15,000 \\\text { year 5 } & -0- & -0- & 15,000\end{array}$
-Under NPV evaluation and assuming these machines are mutually exclusive,which machine(s) would Horne Robinson Inc.choose?

• A) Machine A
• B) Machine B
• C) Machine C
• D) Machine A and B

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Definitions:

Unemployment

The situation where individuals who are capable of working and willing to work do not find employment.

Opportunity Costs

The cost of the next best alternative foregone as a result of making a decision.

Scarce Resources

Essential goods and services that are limited in supply relative to demand, necessitating allocation and economical usage.

Macroeconomics Question

A question that relates to the study and analysis of the economy as a whole, including issues like inflation, unemployment, and economic growth.