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

question 48

Multiple Choice

Use the following information to answer the following question(s) .
Delta Inc.is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually.Due to the sales increase,Delta will need to increase working capital by $1,000 at the beginning of the project.Delta will depreciate the machine using the straight-line method over the project's five year life to a salvage value of zero.The machine's purchase price is $20,000.The firm has a marginal tax rate of 34 percent,and its required rate of return is 12 percent.
-The machine's initial cash outflow is

• A)$20,000.
• B)$21,000.
• C)$27,000.
• D)$23,000.

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Definitions:

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less competent or in a worse situation, which can boost self-esteem.

Self-effacing Bias

The tendency to attribute successes to external factors and failures to internal factors, often observed in some cultures.

Homogeneity Of Attribution

The tendency to assume that individuals within a group share the same attributes, beliefs, or characteristics, often leading to stereotypes.

Explanatory Style

The tendency to use similar causal attributions for a wide variety of events in one’s life.