A Machine Costs $25,000;it Is Expected to Generate Annual Cash

question 109

Multiple Choice

A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.The net present value of the machine is:

• A)$(3,840).
• B)$(3,370).
• C)$0.
• D)$21,630.
• E)$28,840.

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Definitions:

Test-oriented

An approach or system that places a strong emphasis on testing and assessments, often in educational or psychological contexts.

Domain-oriented

An approach or method that focuses on specific areas of knowledge or activity rather than being general or broad in scope.

Treatment Planning

The process of outlining the strategies and interventions to be used in addressing a client's specific needs or conditions.

Prioritizing Problems

The process of determining the order in which problems or issues should be addressed based on their urgency, importance, or impact.