Westland College Has a Telephone System That Is in Poor

question 51

Multiple Choice

Westland College has a telephone system that is in poor condition. The system either can be overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives: Westland College uses a 10% discount rate and the total cost approach to net present value analysis. The working capital required under the new system would be released for use elsewhere at the conclusion of the project. Both alternatives are expected to have a useful life of eight years. The net present value of the new system alternative is:

• A)($483,095)
• B)($583,095)
• C)($596,395)
• D)($536,395)

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Definitions:

Flexible

Capable of adapting to changes and new conditions in a thoughtful and efficient manner.

Span of Control

The number of individuals that a manager or supervisor is directly responsible for overseeing in an organizational structure.

Supervisory Direction

Guidance and oversight provided by supervisors to ensure tasks and activities are completed according to organizational standards.

Assembly Plant

A manufacturing facility where various components of a product are put together to form a final product.