Darth Company Is Considering the Purchase of New Heavy Construction

question 68

Multiple Choice

Darth Company is considering the purchase of new heavy construction equipment that will cost $2,000,000 and have a life of eight years with no expected salvage value. The expected cash flows associated with the project are as follows:
$\begin{array}{lll}&\text { Cash } & \text { Cash Expenses \& } \\\text { Year } &\text { Revenues }&\text { Depreciation }\\1 & \$ 2,400,000 & \$ 1,900,000 \\2 & \$ 2,400,000 & \$ 1,900,000 \\3 & \$ 2,400,000 & \$ 1,900,000 \\5 & \$ 2,400,000 & \$ 1,900,000 \\6 & \$ 2,400,000 & \$ 1,900,000 \\7 & \$ 2,400,000 & \$ 1,900,000 \\8 & \$ 2,400,000 & \$ 1,900,000 \\& \$ 2,400,000 & \$ 1,900,000\end{array}$
-Refer to the Figure.What is the average annual income for this project?

• A)$62,500
• B)$300,000
• C)$500,000
• D)$1,900,000

---

Definitions:

Sexual Reassignment Surgery

A medical procedure(s) by which a person's physical sexual characteristics are altered to resemble that of their identified gender.

Sexually Transmitted Disease

Infections commonly spread by sex, especially vaginal intercourse, anal sex, and oral sex, characterized by various symptoms and requiring medical treatment.

Symptoms

Physical or mental features that are regarded as indicating a condition of disease, particularly such features that are apparent to the patient.

Sexual Dysfunction

Disorders related to any phase of the sexual response cycle that prevent the individual or couple from experiencing satisfaction from sexual activity.