Russell Corp

question 39

Multiple Choice

Russell Corp.is considering the purchase of a new machine for $76,000.The machine would generate an annual cash flow of $23,214 per year for five years.At the end of five years, the machine would have no salvage value.The company's cost of capital is 12 percent.The company uses straight-line depreciation with no mid-year convention. What is the net present value for the machine, assuming no taxes are paid?

• A) $7,686
• B) $-0-
• C) $76,000
• D) $(185,500)

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Definitions:

Monozygotic Twins

Twins that result from one fertilized egg splitting and developing into two embryos, genetically identical.

Dizygotic Twins

Twins conceived by the union of two different ova (or a single ovum that has split) with two different sperm cells; also called fraternal twins; they are no more alike genetically than any other siblings.

Concordance

The agreement or compatibility between traits, beliefs, or values among individuals or in data, often used in genetics and psychology to measure similarity.

Canalization

Limitation on variance of expression of certain inherited characteristics.