The World Dictionary Needs to Purchase a New Printing Machine

question 32

Multiple Choice

The World Dictionary needs to purchase a new printing machine costing $1.8 million.Management is estimating that the machine will generate cash inflows of $250 000 for three years and $350 000 for the following four years.If management requires a minimum 15 per cent rate of return,should they purchase this particular machine? Why or why not?

• A)yes;because the IRR is 18.30 per cent
• B)yes;because the IRR is 4.32 per cent
• C)no;because the IRR is 18.30 per cent
• D)no;because the IRR is 4.32 per cent
• E)The answer can not be determined as there are multiple IRRs.

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Definitions:

Insight Therapy

A form of psychotherapy that focuses on gaining insight into one's behavior, thoughts, and feelings, often exploring the unconscious mind.

Person-Centered Therapy

A form of talk therapy developed by Carl Rogers, emphasizing a non-directive, empathetic approach and unconditional positive regard towards the client.

Modern Psychoanalysts

Describes psychoanalysts who practice and develop theories beyond the foundational approaches of Freud, incorporating more contemporary psychological theories and research.

Face-To-Face Discussions

Conversations where participants make direct eye-contact, allowing for non-verbal cues to be included in communication.