A New Machine That Costs $79,860 Is Expected to Save

question 42

Multiple Choice

A new machine that costs $79,860 is expected to save annual cash operating costs of $20,000 over each of the next five years. The machine's internal rate of return is:

• A)approximately 4%.
• B)approximately 6%.
• C)approximately 8%.
• D)approximately 10%.
• E)approximately 12%.

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Definitions:

Day-neutral Plants

do not require a specific photoperiod to initiate flowering, allowing them to bloom regardless of night length.

Photoperiod

The duration of an organism's daily exposure to light, influencing various biological and physiological processes.

Photoperiodism

The physiological reaction of organisms to the length of day or night, influencing behaviors like flowering in plants.

Phototropism

The orientation of a plant or other organism in response to light, either towards the light source (positive phototropism) or away from it (negative phototropism).