The Tool Box Needs to Purchase a New Machine Costing

question 26

Multiple Choice

The Tool Box needs to purchase a new machine costing $1.46 million.Management is estimating the machine will generate cash inflows of $223,000 the first year and $600,000 for the following three years.If management requires a minimum 12 percent rate of return,should the firm purchase this particular machine? Why or why not?

• A)Yes, because the IRR is 10.75 percent
• B)Yes, because the IRR is 12.74 percent
• C)No, because the IRR is 10.75 percent
• D)No, because the IRR is 12.74 percent
• E)The answer cannot be determined as there are multiple IRRs

Recognize the importance of measuring employee attitudes and related behaviors in the HR culture.

Understand the historical significance of key events, terms, and figures in American history from the 1960s to the 1980s.

Analyze the debate and significance of the Equal Rights Amendment within the context of American society.

Evaluate the contrasting uses of "freedom" by different political groups and individuals.

---

Definitions:

Drawing Account

A separate account used to track the amount of money or assets taken out of a business by its owners for personal use.

Separate Capital Account

An account used in partnerships and sole proprietorships that shows the owner's original investment plus any retained earnings or minus any losses and withdrawals.

Partnerships

A form of business organization in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Treasury Stock

Treasury Stock represents shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.