The Following Present Value Factors Are Provided for Use in This

question 100

Multiple Choice

The following present value factors are provided for use in this problem:



$\begin{array} { cc } &\text{Present}&\\&\text{Value}& \text{Present Value of an}\\\text{Periods}& \text{of 1 at 8 \%}& \text{Annutity of 1 at 8 \%}\\1 & 0.9259 & 0.9259 \\ 2 & 0.8573 & 1.7833 \\ 3 & 0.7938 & 2.5771 \\ 4 & 07350 & 3.3121 \end{array}$
Norman Co.wants to purchase a machine for $40,000 but needs to earn an 8% return.The expected year-end net cash flows are $12,000 in each of the first three years and $16,000 in the fourth year.What is the machine's net present value (rounded to the nearest whole dollar) ?

• A) $(9,075)
• B) $2,685
• C) $42,685
• D) $(28,240)
• E) $52,000

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Definitions:

Objections

Concerns or arguments raised by a customer or client against a product or service being sold.

Rationalizations

The process of providing reasonable explanations or justifications for decisions, actions, or beliefs, often in retrospect.

Need-satisfaction Presentation

A sales technique where the salesperson focuses on identifying and meeting the needs of the customer as a way to persuade them to purchase a product or service.

Objections

Concerns or questions raised by a potential customer that a salesperson must address to complete a sale.