Shirt Company Wants to Purchase a New Cutting Machine for Its

question 13

Multiple Choice

Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $150,000. The required rate of return is 12% and the current machine is expected to last for four years. What is the maximum dollar amount Shirt Company would be willing to spend for the machine, assuming its life is also four years? Income taxes are not considered.

• A)$263,500
• B)$360,300
• C)$395,870
• D)$455,550

---

Definitions:

Mouse Operation

A series of actions or functions that a user can perform using a mouse, such as clicking, double-clicking, dragging, and right-clicking.

Mini Toolbar

A small, contextual toolbar in Microsoft Office that appears near selected text, offering quick access to formatting tools.

Office App

A generic term for applications developed by Microsoft as part of the Office suite, including Word, Excel, PowerPoint, etc.

Help Window

A user interface element providing assistance or guidance on the features of software to users.