Dexter Smith & Co

question 36

Multiple Choice

Dexter Smith & Co.is replacing a machine simply because it has worn out.The new machine will not affect either sales or operating costs and will not have any salvage value at the end of its 5-year life.The firm has a 34 percent tax rate,uses straight-line depreciation over an asset's life,and has a positive net income.Given this,which one of the following statements is correct?

• A)As a project, the new machine has a net present value equal to minus one times the machine's purchase price.
• B)The new machine will have a zero rate of return.
• C)The new machine will generate positive operating cash flows, at least in the first few years of its life.
• D)The new machine will create a cash outflow when the firm disposes of it at the end of its life.
• E)The new machine creates erosion effects.

Recognize the cross-cultural applicability of the Big Five traits.

Determine the potential downsides and benefits associated with specific Big Five traits.

Comprehend the lexical hypothesis and its importance in personality psychology.

Interpret the results and implications of personality assessments.

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Definitions:

Real GDP

An assessment of a country's economic production that is corrected for price fluctuations due to inflation or deflation, demonstrating the actual volume of goods and services created.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, reflecting the effects of inflation.

Inflation Rate

An upward adjustment in the price levels of goods and services witnessed in an economy over a set period.

Base Year

A reference year against which the economic growth, price levels, and other statistical figures are compared in index calculations.