A New, More Efficient Machine Will Last 4 Years and Allow

question 27

Multiple Choice

A new, more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 over its life. At a cost of capital of 13%, how does the net working capital change affect the project's NPV?

• A) NPV increases by $38,668.13.
• B) NPV increases by $61,330.09.
• C) NPV will not change.
• D)NPV increases by $100,000.

---

Definitions:

Achievement-Oriented Leadership

A leadership style characterized by setting challenging goals, expecting high performance, and demonstrating confidence in team members' abilities.

Unambiguous Tasks

Tasks that are clearly defined with specific goals, methods, and outcomes, leaving little room for misunderstanding.

Path-Goal Leadership

A theory that leaders can affect followers' satisfaction and performance by clarifying paths to goals and removing obstacles.

Management Training Programs

Management training programs are educational courses or workshops designed to improve the skills, knowledge, and competencies of managers and potential leaders within an organization.