A New Machine,with a 4-Year Life,has an Initial Cost of $1,200

question 13

Multiple Choice

A new machine,with a 4-year life,has an initial cost of $1,200 and annual costs of $380.The equivalent annual cost of this machine is best described as the

• A)4-year annuity payment that has the same net present value as the project's costs given a stated discount rate.
• B)4-year total of all costs divided by four.
• C)annual sales needed to offset these additional costs.
• D)lump sum payment at Time 0 that is equal to these additional costs at a given discount rate.
• E)4-year average after-tax cash flow resulting from the annual costs.

---

Definitions:

Social Media Platforms

Online platforms that enable users to create and share content or participate in social networking, such as Facebook, Twitter, and Instagram.

Cold Canvass

A sales technique involving unsolicited contact with potential customers who were not expecting communication, seeking to identify new leads or opportunities.

Centers of Influence

Centers of influence are key individuals or institutions that can impact the decisions of a wide network of people, often used in marketing to shape perceptions or behaviors.

Sales Lead Clubs

Groups or associations that focus on generating and sharing leads among members, typically within specific industries or market segments.