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

question 142

Multiple Choice

Use the information below to answer the following question(s) .
Sommer Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $410,000. Projected net cash inflows from the equipment are as follows:
Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero.
-If Sommer Corporation decides to refurbish the equipment at a cost of $50,000 at the end of year 6, it could be used for one more year and would have a $30,000 residual value at the end of year 7. Assume the cash inflow in year 7 is $65,000. The NPV of just the refurbishment is closest to

• A) $4,030.
• B) $15,820.
• C) $17,590.
• D) $41,170.

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Definitions:

Integrative IHRM Approach

Combining home HR practices with local practices and selecting the most qualified people for the appropriate positions no matter where these candidates come from.

Local Practices

The customs, habits, and ways of working that are typical or established in a specific region, community, or organization.

Cultural Assimilation

The process by which individuals or groups adopt the culture of another group, losing their original identity.

International Context

A perspective that considers the influence of global forces, cultures, market dynamics, and legal systems on businesses, policies, and strategies.