Kerwin Company Is Considering Purchase of Equipment That Costs $50,000

question 54

Multiple Choice

Kerwin Company is considering purchase of equipment that costs $50,000.If the useful life is expected to be 5 years and Crown's required rate of return is 12%,what is the minimum annual cash inflow that the equipment must offer for the investment to be acceptable? (Do not round your intermediate calculations.Round your final answer to the nearest dollar. )

• A) $8,929
• B) $13,870
• C) $12,076
• D) $17,623

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Definitions:

Variance

A measure of the dispersion indicating how much the values in a data set differ from the mean.

Relatively Efficient

Describes a statistical estimator or procedure that has lower variance or better performance compared to others under certain conditions.

Point Estimate

A single value given as an estimate of a population parameter, often derived from sample data.

Population Parameter

A numerical value that characterizes a given population, such as mean or standard deviation.