Fenwick Company Is Considering a Purchase of Equipment That Costs

question 60

Multiple Choice

Fenwick Company is considering a purchase of equipment that costs $60,000 and is expected to offer annual cash inflows of $16,645 for 5 years.Fenwick Company's required rate of return is 10%.The internal rate of return of this investment project is closest to: (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

• A) 12%.
• B) 27%.
• C) 17%.
• D) 11%.

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Definitions:

Countershock

The body's reactive processes following the initial shock or alarm phase in response to stress.

Resistance

The refusal to accept or comply with something; in a work setting, it typically refers to employees' opposition to changes in policies or practices.

Recognition

The act of acknowledging or rewarding an individual's achievements, contributions, or status, often used as a motivational tool in the workplace.

Alarm

The initial reaction of the body to a perceived threat, part of the stress response involving immediate physiological changes.