Lebert, Inc

question 9

Multiple Choice

Lebert, Inc., is considering the purchase of a machine that would cost $380,000 and would last for 7 years. At the end of 7 years, the machine would have a salvage value of $49,000. The machine would reduce labor and other costs by $96,000 per year. Additional working capital of $6,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 18% on all investment projects. The net present value of the proposed project is closest to:

• A)$1,338
• B)($8,849)
• C)($14,048)
• D)($2,778)

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Definitions:

Genital Arousal

A physiological response involving increased blood flow to the genital area, often in response to sexual stimulation.

Sexual Dreams

Dreams with sexual content or themes, reflecting personal desires, experiences, or purely imaginative scenarios.

Dreams' Content

The remembered storyline, images, thoughts, and emotions experienced during dreams.

Night Terrors

A sleep disorder characterized by high arousal and an appearance of being terrified; unlike nightmares, night terrors occur during Stage 4 sleep, within two or three hours of falling asleep, and are seldom remembered.