Concose Park Department Is Considering a New Capital Investment

question 32

Multiple Choice

Concose Park Department is considering a new capital investment. The cost of the machine is $280,000. The annual cost savings if the new machine is acquired will be $165,000. The machine will have a 3-year life and the terminal disposal value is expected to be $35,000. There are no tax consequences related to this decision. If Concose Park Department has a required rate of return of 14%, which of the following is closest to the present value of the project?

• A) $190,880
• B) $87,750
• C) $126,755
• D) $103,130

---

Definitions:

Advocates

Individuals or groups that actively support or recommend a particular cause or policy.

Incarceration

The condition of being held in a prison or jail as a lawful penalty for committing a crime.

Durkheim

A French sociologist, Émile Durkheim, is one of the founding fathers of sociology, known for his studies on social integration, religion, and the theory of social facts.

Deviance

Behaviors or actions that violate social norms, ranging from minor infractions to serious crimes, and often resulting in social disapproval.