Baker Enterprises Is Evaluating the Purchase of a New Computer

question 193

Multiple Choice

Baker Enterprises is evaluating the purchase of a new computer network system. The new system would cost $24,000 and have a useful life of 6 years. At the end of the system's life, it would have a residual value of $3,000. Annual operating cost savings from the new system would be $8,800 per year for each of the six years of its life. Baker Enterprises has a minimum required rate of return of 12% on all new projects. The net present value of the new network system would be closest to

• A) $10,656.
• B) $12,177.
• C) $13,698.
• D) $37,698.

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Definitions:

Decentering

A cognitive developmental process where an individual learns to consider multiple aspects of a situation rather than focusing on a single standpoint.

Transducing

The process of converting a signal or stimulus from one form to another, often used in the context of sensory input conversion by the nervous system.

Conserving

The act of preserving something in its original or existing state, often referring to natural resources, energy, or cultural heritage.

Egocentric Speech

A developmental stage in children where language is used primarily for the self, without consideration for the listener's perspective or understanding.