The Zeron Corporation Wants to Purchase a New Machine for Its

question 129

Multiple Choice

The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $380,000.The investment is expected to generate $125,000 in annual cash flows for a period of four years.The required rate of return is 12%.The old machine can be sold for $20,000.The machine is expected to have zero value at the end of the four-year period.What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered.

• A) $19,750; yes
• B) $35,775; no
• C) $360,000; yes
• D) $163,005; no

Comprehend the advantages and limitations of multicolumn designs.

Identify effective strategies for enhancing document readability, particularly in text-dense formats.

Articulate guidelines for creating effective hyperlinks in online documents.

Differentiate between typeface, type family, type case, and type setting concepts.

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Definitions:

Marginal Cost

The added expenditure resulting from the production of an extra unit of a good or service.

Socially Optimal

A condition or outcome that maximizes societal welfare, taking into account all costs and benefits to society as a whole.

Positive Externalities

Benefits that occur from a transaction or activity to third parties who are not directly involved in the transaction or activity.

External Costs

Costs of a transaction or activity that affect parties who did not choose to incur that cost and are not reflected in market prices, often necessitating government intervention.