Use the Information Below to Answer the Following Question(s)

question 170

Multiple Choice

Use the information below to answer the following question(s) .Neptune Ltd.wants to expand its operations by manufacturing a new product line.New equipment will cost $225,000.Incremental sales are estimated at $150,000 per year for 6 years.Variable costs of producing the new product line are 52% of sales and incremental annual fixed costs are $25,000.The equipment can be salvaged after 6 years for 16% of its original cost.The company's required rate of return for new projects is 18%.Ignore income taxes.
-The time value of money refers to the concept that

• A)saving money has value for the business.
• B)both time and money are valuable resources to any organization.
• C)money invested today will grow.
• D)the value of a monetary unit today is worth less than the same unit in the future.
• E)the value of a monetary unit today is worth more than the same unit in the future.

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Definitions:

Perceptual Skills

These are cognitive functions related to the ability to interpret, process, and assign meaning to the information gathered through the senses.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary physiological processes and is associated with emotional and stress responses.

Hypnotizability

The extent to which an individual is susceptible to respond to hypnotic suggestions and achieve a state of altered consciousness.

Memory Quiz

A test or assessment designed to measure the accuracy, capacity, or recall ability of an individual's memory.