Beaver Corporation Is Investigating the Purchase of a New Threading

question 104

Multiple Choice

Beaver Corporation is investigating the purchase of a new threading machine that costs $18,000. The machine would save about $4,000 per year over the present method of threading component parts, and would have a salvage value of about $3,000 in 6 years when the machine would be replaced. The company's required rate of return is 12%. The machine's net present value is closest to:

• A)$1,556
• B)($35)
• C)$11,000
• D)$8,000

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Definitions:

Gender Contributions

The roles, responsibilities, and activities assigned to or accepted by individuals based on their societal definitions of gender.

Toolmaker

An individual or entity that designs and manufactures tools, often with precision, for various purposes including construction, manufacturing, and technology.

Fossil Record

The collection of all known fossils and their placement in rock formations and sedimentary layers, which provides evidence about the history of life on Earth.

Homo Habilis

An extinct species of early human that lived approximately 2.4 to 1.4 million years ago, known for its use of simple stone tools.