Refer to Figure 13-5

question 168

Multiple Choice

Refer to Figure 13-5. What is the amount of machine time for model P-4 in terms of percent of a machine hour?

• A) 10%
• B) 20%
• C) 25%
• D) 30%
• E) 50%

Calculate net present value (NPV) of a given capital project.

Determine income tax expenses related to capital budgeting projects.

Understand the cash flow dynamics in capital budgeting including working capital management.

Analyze the effect of depreciation on income tax calculations.

---

Definitions:

Robert Zajonc

A psychologist known for his work on the mere-exposure effect and theories on social and emotional processes.

Lie-Detector Test

A test using a polygraph machine to measure physiological responses that are believed to indicate lying.

Polygraph

A device that measures and records several physiological indicators such as blood pressure, pulse, and perspiration while the subject is asked questions, purported to indicate lying.

Innocent Person

An individual who has not committed the crime or offense they are accused of.