(Ignore Income Taxes in This Problem)The Management of Byrge Corporation

question 172

Multiple Choice

(Ignore income taxes in this problem) The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines.The aircraft would have a useful life of 8 years.The company uses a discount rate of 10% in its capital budgeting.The net present value of the investment,excluding the intangible benefits,is -$448,460.To the nearest whole dollar how large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?

• A) $44,846
• B) $56,058
• C) $84,060
• D) $448,460

Relate the concept of opportunity cost to production and service outsourcing decisions.

Define the scope of economics and its application to decision-making and resource allocation.

Recognize the impact of information availability on market operations and efficiency.

Analyze the financial implications of educational investments and choices.

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Definitions:

Visible Minority

Outdated term used primarily in Canada by Statistics Canada to refer to a category of persons who are non-Caucasian in race or non-white in color and who do not report being Indigenous.

Canadian-Ness

The qualities, characteristics, or cultural elements that are considered distinctly Canadian.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Guaraní

A group of culturally and linguistically related indigenous peoples in South America, primarily found in Paraguay and parts of the surrounding countries.