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

question 84

Multiple Choice

The management of Zesty Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 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 in this situation: The cash payback period for this investment is

• A) 5 years
• B) 4 years
• C) 2 years
• D) 3 years

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Definitions:

Centrosome

An organelle in animal cells that is the main microtubule-organizing center; typically contains a pair of centrioles and is important in cell division.

Golgi Complex

An organelle in eukaryotic cells involved in modifying, sorting, and packaging proteins and lipids for export or use within the cell.

Lysosome

A membrane-bound organelle found in most eukaryotic cells containing enzymes that digest macromolecules and defective cellular components.

Molecular Chaperones

Proteins that assist the folding or unfolding and the assembly or disassembly of other macromolecular structures, ensuring they attain or maintain the correct functional conformation.