Allen College Has a Telephone System That Is in Poor

question 47

Multiple Choice

Allen College has a telephone system that is in poor condition.The system can be either overhauled or replaced with a new system.The following data have been gathered concerning these two alternatives: Allen College uses a 12% discount rate and the total cost approach to net present value analysis.Both alternatives are expected to have a useful life of eight years. The net present value of the alternative of overhauling the present system is closest to:

• A)($238,232)
• B)($108,000)
• C)($228,232)
• D)($232,272)

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Definitions:

Anxiety

A psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components of apprehension, tension, or fear.

Freud

Refers to Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Archetypes

Universal, symbolic images or themes that recur across cultures and literature, representing fundamental human motifs or experiences.

Defence Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.