Jackson & Sons Uses Packing Machines to Prepare Its Products

question 64

Multiple Choice

Jackson & Sons uses packing machines to prepare its products for shipping.One machine costs $397,500 and lasts 5 years before it needs replaced.The machine will be worthless after the 5 years.The annual aftertax operating cost per machine is $38,400.What is the equivalent annual cost of one machine if the required rate of return is 16 percent?

• A)$148,556.67
• B)$159,800.23
• C)$156,004.12
• D)$143,006.15
• E)$154,224.08

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Definitions:

Internal Reaction

The psychological and emotional response of an individual to external stimuli or events.

External Force

Influences originating outside an individual or system that can affect behaviors, decisions, or change trajectories.

Conscientious

A personality trait characterized by being diligent, careful, meticulous, and responsible.

Perfection

The state or condition of being free from any flaws or defects.