Woods Manufacturing Is Considering the Purchase of a New Sewing

question 68

Multiple Choice

Woods Manufacturing is considering the purchase of a new sewing machine that costs $18,000.The machine,because of its efficiency,will save about $4,000 in cost each year.The machine is expected to have a salvage value of $3,000 and a life of 6 years.Woods' required rate of return is 12%.What is the machine's net present value?

• A) $34
• B) $1,520
• C) $15,000
• D) $24,000

---

Definitions:

Frameworks

Frameworks refer to the essential structure and systematic arrangement of concepts, theories, or physical supports.

Western Metaphysics

A branch of philosophy that explores the fundamental nature of reality, including concepts such as existence, objects and their properties, space and time, cause and effect, and possibility.

Basic Reality

Basic Reality refers to the fundamental, underlying nature or essence of existence as perceived or theorized by philosophy.

Metaphysical Viewpoint

A perspective that deals with questions of existence, the nature and structure of the universe, reality, and the theory of knowledge.