A Company Is Planning to Purchase a Machine That Will

question 52

True/False

A company is planning to purchase a machine that will cost $24,000,have a 6-year life,and have no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.Total income over the life of the machine is estimated to be $12,000.The machine will generate net cash flows per year of $6,000.The average rate of return for the machine is 16.7%.

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Definitions:

Difference Threshold

The minimum change in stimulation required to detect a difference between two stimuli, also known as the just noticeable difference (JND).

Heavier Objects

Objects with greater mass or weight compared to other items in their comparison set.

Weber's Law

A principle in psychology stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Afterimage

An afterimage is a visual impression that persists as a negative or positive image on the retina after the stimulus that caused it is no longer present.