Benz Company Is Considering the Purchase of a Machine That

question 6

Multiple Choice

Benz Company is considering the purchase of a machine that costs $100,000 and has a useful life of 18 years with no salvage value.The company's required discount rate is 12%.If the machine's net present value is $5,850,then the annual cash inflows associated with the machine must be (round to the nearest whole dollar) :

• A) $13,760.
• B) $14,600.
• C) $42,413.
• D) it is impossible to determine from the data given.

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Definitions:

Hue

A color or shade of color perceived in an object, determined by the wavelength of light it reflects.

Longest Wavelength

Refers to the type of electromagnetic waves with the lowest frequencies and, correspondingly, the longest physical wavelengths.

Red

A primary color that is at the end of the visible spectrum of light, associated with energy, passion, and danger.

Visual Receptors

Specialized cells located in the retina of the eye, responsible for converting light into neural signals that the brain can interpret.