You Are Considering Investing $600,000 in a New Automated Inventory

question 31

Multiple Choice

You are considering investing $600,000 in a new automated inventory system that will provide after-tax cost savings of $50,000 next year.These cost savings are expected to grow at the same rate as sales.If sales are expected to grow at 5% per year and your cost of capital is 10%,then what is the NPV of the automated inventory system?

• A)$400,000
• B)$500,000
• C)-$100,000
• D)$1,000,000

---

Definitions:

Cheyne-Stokes Breathing

A pattern of breathing characterized by gradual increases and decreases in respiratory rate and depth, often associated with heart failure or brain damage.

Rhonchal Bradypnea

Slow breathing rate accompanied by loud snoring or rattling sounds, suggesting obstruction in the airways.

Kussmaul's Respirations

A form of overbreathing marked by profound and strenuous respiration, commonly linked to diabetic ketoacidosis.

Ventricular Tachycardia

A heart rhythm disorder characterized by a fast heartbeat originating from the ventricles.