The Becker Company Is Interested in Buying a Piece of Equipment

question 26

Multiple Choice

The Becker Company is interested in buying a piece of equipment. The following data have been assembled concerning this equipment:
$\begin{array}{|l|r|}\hline \text { Cost of Required Equipment } & \$ 250,000 \\\hline \text { Working capital required } & \$ 100,000 \\\hline \text { Annual operating cash inflows } & \$ 80,000 \\\hline \text { Cash repair at End of Four years } & \$ 40,000 \\\hline \text { Salvage Value at End of Six Years } & \$ 90,000 \\\hline\end{array}$
This equipment is expected to have a useful life of six years. At the end of the sixth year, the working capital would be released for use elsewhere. The company's discount rate is $10 \%$ . (Ignore income taxes in this problem.)
- The present value of all future annual operating cash inflows is closest to which of the following? (Do not round your intermediate calculations.)

• A) $278,700.
• B) $348,421.
• C) $452,301.
• D) $480,000.

Analyze the impacts of various health behaviors and attitudes on the progress and management of diseases.

Understand the relationship between pay systems and individual or group productivity.

Analyze the effectiveness of different pay systems (such as piece rate, variable pay, and merit pay) on worker productivity and cooperation.

Recognize the impact of financial incentives and pay-for-performance on employee turnover and performance.

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Definitions:

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Brief Psychodynamic Therapist

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Meta-Analysis

A statistical method that combines the results of multiple studies addressing a set of related research hypotheses.