Simms Manufacturing is considering two alternative investment proposals with the following data:
Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Discount rate Proposal X $620,0008 years $130,000$0 Straight-line 9% Proposal Y $400,0008 years $80,000$0 Straight-line 10%
Present Value of an Annuity of $1 123456789105%1.9522.7233.5464.3295.0765.7866.4637.1087.7226%0.9432.833.4654.214.9175.586.2106.807.3607%0.9351.8082.6244.1004.7675.3895.9716.5157.0248%0.9261.7832.5773.3124.6235.2065.7476.2476.7109%0.9171.7592.5313.2403.8905.0335.5355.9956.41810%0.9091.7362.4873.1703.794.3555.3355.7596.145
After calculating the net present value of the two alternatives, Proposal Y appears to deliver the most
favorable results.
Sensory Register
The initial stage of memory, where sensory information is stored for a very short period of time before it is processed further or forgotten.
Visual Image
A mental representation of visible phenomena, which is not currently being viewed but is recalled or imagined.
Sensory Memory
The shortest-term element of memory that allows for the ability to retain impressions of sensory information after the original stimuli have ended.
Long-term Memory
A type of memory in which information is stored for an extended period, potentially for a lifetime, and includes facts, experiences, and skills.