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

question 95

Multiple Choice

The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: The average rate of return for this investment is

• A) 5%
• B) 10.5%
• C) 25%
• D) 15%

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Definitions:

Visuospatial Sketchpad

A part of short-term memory that deals with the handling of visual and spatial data.

Executive Control System

A cognitive system responsible for planning, decision making, problem-solving, and regulating emotions and behavior.

Dred Scott

An enslaved African American man who unsuccessfully sued for his freedom, resulting in a landmark U.S. Supreme Court decision in 1857.

Roger Taney

The fifth Chief Justice of the United States Supreme Court, known for his controversial ruling in the Dred Scott v. Sandford case, which denied citizenship to African Americans.