Vista Company Wants to Replace One of Its Older Production

question 30

Multiple Choice

Vista Company wants to replace one of its older production machines.The estimated cost is $180,000.Using a discount rate of 18%,the company calculates a net present value of the new machine to be negative $10,000.Based on this information which of the following statements is true?

• A)The use of a higher discount rate would cause the net present value to be positive.
• B)The guaranteed rate of return on the new purchase is 18%.
• C)The net present value will be positive if the actual purchase price is less than $170,000.
• D)The internal rate of return on the truck is negative.
• E)None of the answer choices is correct.

Recognize the differences in cognitive development stages according to Piaget and Kohlberg.

Grasp the significance of social and emotional factors in adolescent development, including relationships with peers and adults.

Understand the concept of gender differences in various abilities during adolescence.

Recognize the challenges and characteristics of mental health issues in adolescence, including eating disorders.

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Definitions:

Labor Hire

The process of employing workers, often on a temporary basis, to perform certain jobs or tasks.

Marginal Productivity

is the additional output resulting from using one more unit of a particular input, holding all other inputs constant.

Hourly Wage

The rate of pay employees receive for one hour of work, an important indicator of labor costs and worker compensation in an economy.

Marginal Resource Cost

The change in total cost that comes from producing one additional unit of a good or service.