The Following Present Value Factors Are Provided for Use in This

question 92

Multiple Choice

The following present value factors are provided for use in this problem. Xavier Co.wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value.Xavier requires an 8% return on investment.The expected year-end net cash flows are $12,000 in each of the four years.What is the machine's net present value (round to the nearest whole dollar) ?

• A)$3,480.
• B)$2,745.
• C)$40,480.
• D)$(3,480).
• E)$(2,745).

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Definitions:

Standard Stimulus

A specific stimulus used as a reference point in psychological experiments to measure reactions or perceptions.

Weber's Law

A principle describing the smallest difference in stimulus intensity that is detectable, typically proportional to the intensity of the original stimulus.

Difference Threshold

The smallest change in stimulation that can be detected 50% of the time by a participant.

Color Receptors

Cells in the retina of the eye that are sensitive to specific wavelengths of light, enabling color vision.