The Management of Nebraska Corporation Is Considering the Purchase of a New

question 4

Multiple Choice

The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability:
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-The average rate of return for this investment is

• A) 18%
• B) 16%
• C) 58%
• D) 10%

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Definitions:

Employee Orientation

A process for introducing new hires to their roles, the company culture, policies, and their colleagues.

Accident

An unplanned event that results in injury, damage, or loss.

Paycheque

The physical or electronic means by which an employer disburses wages or salaries to employees.

Incidence Rate

A measure used in epidemiology to assess the frequency of new cases of a disease or condition within a specified population over a certain period of time.