Use the Information Below to Answer the Following Question(s)

question 170

Multiple Choice

Use the information below to answer the following question(s) .Neptune Ltd.wants to expand its operations by manufacturing a new product line.New equipment will cost $225,000.Incremental sales are estimated at $150,000 per year for 6 years.Variable costs of producing the new product line are 52% of sales and incremental annual fixed costs are $25,000.The equipment can be salvaged after 6 years for 16% of its original cost.The company's required rate of return for new projects is 18%.Ignore income taxes.
-The time value of money refers to the concept that

• A)saving money has value for the business.
• B)both time and money are valuable resources to any organization.
• C)money invested today will grow.
• D)the value of a monetary unit today is worth less than the same unit in the future.
• E)the value of a monetary unit today is worth more than the same unit in the future.

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Strengthened or supported, especially in terms of structure, behavior, or beliefs.

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The process of responding to an old stimulus as if it were new again, typically after the stimulus has not been presented for a period of time.

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Very young children, typically under one year of age, who are at the earliest stage of human life.