A Fast-Food Company Invests $2

question 46

Multiple Choice

A fast-food company invests $2.2 million to buy machines for making slurpees. These can be depreciated using the MACRS schedule shown above. If the cost of capital is 10%, what is the increase in the net present value (NPV) of the product gained by using MACRS depreciation over straight-line depreciation for three years?

• A) $28,559
• B) $47,599
• C) $76,158
• D) $190,321

Recognize the role of genetics in determining physical and psychological traits.

Understand the effects and principles of teratogens on prenatal development.

Understand the concept and application of benchmarking in improving business practices.

Identify and describe the challenges in measuring quality characteristics in service-based outputs.

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Definitions:

Workers' Compensation

A system of insurance that provides financial and medical benefits to employees injured in the course of employment.

Strict Liability

A legal principle where a party is held responsible for damages or loss, regardless of fault or intention.

Employer Negligence

A situation where an employer fails to provide a safe working environment, leading to injury or damage to employees.

ERISA

The Employee Retirement Income Security Act, a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.