Conroy Wants to Purchase a Machine for a New Product

question 6

Multiple Choice

Conroy wants to purchase a machine for a new product line that costs $138,750. The company's engineering department estimates the machine will last 10 years and provide an annual contribution margin of $25,000. Ignore income taxes. The internal rate of return to the nearest tenth of a percent is

• A) 12.4%
• B) 11.6%
• C) 13.46%
• D) 12.64%

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Definitions:

Defense Mechanism

Psychological strategies used by the unconscious mind to protect itself from anxiety arising from unacceptable thoughts or feelings.

Existentialism

The view that people are completely free and responsible for their own behavior.

Thematic Apperception Test

A psychological assessment tool that uses a series of provocative yet ambiguous images to elicit responses that reveal a person's underlying motivations, feelings, and attitudes toward complex life situations.

Rorschach Inkblot Test

A psychological test in which a person's perceptions of inkblots are recorded and analyzed using psychological interpretation.