Memphis Co

question 92

Multiple Choice

Memphis Co.is considering purchasing a machine for $83,200 that will increase cash flows by $40,000 in the first year,$30,000 the second year,and $25,000 the third year.The machine will have no residual value.The minimum rate of return is 10 percent.The present value factors,at 10 percent,for the three years are 0.909,0.826,and 0.751,respectively.
-Using the above information for Memphis,the machine's net present value is

• A)$21,800.
• B)($3,285).
• C)$79,915.
• D)($4,286).

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Definitions:

Information Processing

The way in which information is absorbed, analyzed, stored, and retrieved by the human mind or computers.

Cognitive Development

The development of cognitive processes such as memory, problem-solving, and decision-making, from early childhood to adult age.

Psychosocial Theory

A theory proposed by Erik Erikson that outlines eight stages of psychological development influenced by social interactions.

Freud's Psychoanalytic

A theory of personality development, founded by Sigmund Freud, that emphasizes unconscious processes, childhood experiences, and sexual and aggressive drives.