Answer the Following Questions Using the Information Below

question 28

Multiple Choice

Answer the following questions using the information below:
Footscray Hospital is considering purchasing a new x-ray machine.The existing machine is operable for five more years and will have a zero disposal price.The machine may be sold for $45 000 now.The new machine will cost $325 000 and an additional cash investment in working capital of $10 000 will be required.The new machine will reduce the average time required to take x-rays and will allow additional business to be done at the hospital.The investment is expected to net $30 000 in additional cash inflows during the year of acquisition and $120 000 each additional year of use.The new machine has a five-year life,and zero disposal value.These cash flows will occur throughout the year but are recognised at the end of each year.Ignore income taxes.The working capital investment will not be recovered at the end of the asset's life.
-The 'required rate-of-return' can also be expressed as:

• A)cost of capital.
• B)discount rate.
• C)hurdle rate.
• D)All of these answers are correct.

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Definitions:

Internal Sources

Origins of information, motivation, or inspiration that come from within an individual, such as personal beliefs, thoughts, and emotions.

Beliefs

Mental acceptance of and conviction in the truth, existence, or reliability of something without empirical evidence.

Homework Assignments

Tasks or exercises given by therapists to clients to complete outside of therapy sessions as part of the treatment process.

Transference

The redirection of feelings and desires from one person to another, especially in the context of psychoanalytical therapy.