Western Electronics (WE)is Reviewing the Following Data Relating to a New

question 23

Multiple Choice

Western Electronics (WE) is reviewing the following data relating to a new equipment proposal:
WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years.What is the minimum amount of after-tax annual savings (including depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar) ?

• A)$8,189.
• B)$11,111.
• C)$12,297.
• D)$13,889.
• E)$15,678.

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Definitions:

Expectancy-value Theory

A psychological theory that states motivation is determined by a combination of one's belief in their ability to succeed and the value they place on the success.

Singer-songwriter

An artist who writes, composes, and performs their own musical material, including lyrics and melodies.

Self-awareness

An individual's self-awareness of their personality traits, emotional states, motivations, and aspirations.

Pronouns

Words used in place of nouns to designate people or things previously mentioned or easily identified, contributing to cohesiveness in speech and text.