Allen Ltd Invested in a Machine That Has a 3-Year

question 69

Multiple Choice

Allen Ltd invested in a machine that has a 3-year useful life. The company's discount rate is 12%, and the net present value of the investment is $(573) . Annual cost savings are: year 1 $3,000; year 2 $4,000; and year 3 $5,000. Determine the original cost of the machine. Ignore income taxes.

• A) $12,000
• B) $8,500
• C) $10,000
• D) $9,500

---

Definitions:

Legal System

The system of rules and guidelines, usually enforced through a set of institutions, used to govern a community, society, or country.

Confidence

The feeling of self-assurance arising from an appreciation of one's own abilities or qualities.

Serial Murderers

Individuals who commit a series of murders, usually with psychological gratification as their primary motive.

Empathy

The ability to understand and share the feelings of another from their perspective.