(Present Value Tables Are Required

question 138

Multiple Choice

(Present value tables are required.) Camtash Corporation is considering the purchase of a machine that would cost $21,628 and would have a useful life of 5 years.The machine would generate $6,300 of net annual cash inflows per year for each of the 5 years of its life.The internal rate of return on the machine would be closest to:

• A)8%.
• B)10%.
• C)12%.
• D)14%.

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Definitions:

Happiness

A state of well-being and contentment characterized by positive emotions ranging from contentment to intense joy.

Variety

The characteristic of being diverse or varied, offering multiple choices within a category.

Negative Consumer Mood States

Emotional states of consumers that negatively affect their perceptions, judgments, and consumption behaviors.

Mood Congruency

The concept that people are more likely to remember information that is consistent with their current mood.