The Management of Mashiah Corporation Is Considering the Purchase of a Machine

question 54

Multiple Choice

The management of Mashiah Corporation is considering the purchase of a machine that would cost $290,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $102,000 per year. The company requires a minimum pretax return of 13% on all investment projects. The net present value of the proposed project is closest to:

• A)$154,663
• B)$322,000
• C)$117,796
• D)$245,246

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Definitions:

Explicit Memories

Memories of facts and experiences that an individual can consciously recall and describe.

Implicit Memories

Implicit memories are memories that influence our thoughts and behaviors without our conscious awareness, including skills and tasks learned through repetition.

Explicit Memory

The conscious recollection of information, such as facts and events, which can be verbally communicated.

Knit

The craft of creating fabric or textile by interlocking loops of yarn using needles.