The Management of Arkansas Corporation Is Considering the Purchase of a New

question 111

Multiple Choice

The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: The net present value for this investment is

• A) $36,400
• B) $55,200
• C) $(16,170)
• D) $(126,800)

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Definitions:

Underlying Connective Tissue

The supportive tissue that lies beneath epithelial tissue, providing structural and nutritional support to epithelial cells.

Pseudostratified Columnar

Describes a type of epithelial tissue where cells of different heights appear to be in layers, but all cells are attached to the basement membrane.

Simple Squamous

A type of epithelial cell that is flat and thin, often found lining surfaces involved in passive diffusion, such as the alveoli in the lungs.

Basement Membrane

A thin, dense layer of extracellular matrix that separates epithelial or endothelial cells from the underlying connective tissue.