Braxton Manufacturing Is Considering the Purchase of New Computerized Equipment

question 35

Multiple Choice

Braxton Manufacturing is considering the purchase of new computerized equipment.The machine costs $85,000 and would generate $22,000 in annual cost savings over its 5-year life.At the end of 5 years,the equipment would have a $5,000 salvage value.Braxton's required rate of return is 12%.The machine's net present value is nearest

• A) $2,857
• B) $5,694
• C) $79,306
• D) $110,000

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Definitions:

Religious Faith

A personal or communal belief system in a divine or higher power(s), often encompassing rituals, moral codes, and worship practices.

John Calvin

A French theologian, pastor, and reformer in Geneva during the Protestant Reformation, known for his influential work in the development of the Christian theology system known as Calvinism.

Predetermined

Established or decided in advance, not occurring by chance or without prior planning.

Salvation

Within Christian doctrine, the liberation from sin and its resulting punishments is considered to occur through belief in Christ.