Projects with Different Lives: Your Firm Is Deciding Whether to Purchase

question 9

Multiple Choice

Projects with different lives: Your firm is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $40,000 and should last four years. The lesser quality printer costs $30,000 and should last three years. If the cost of capital for the firm is 13 percent, then what is the equivalent annual cost for the best choice for the firm? Round to the nearest dollar.

• A) $10,000, either printer
• B) $10,000, lesser quality printer
• C) $12,706, lesser quality printer
• D) $13,448, high-quality printer

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Definitions:

Retroflector

A psychological mechanism where an individual keeps back impulses or feelings towards others and redirects them towards themselves, often discussed in Gestalt therapy.

Introjector

An individual who unconsciously incorporates the attitudes, values, or ideas of others into their own personality.

Accepting Responsibility

The act of acknowledging one's own actions and their consequences, often seen as a crucial step in personal development and conflict resolution.

Gestalt Therapy

A form of psychotherapy focused on personal responsibility and experiencing the present moment, emphasizing the holistic nature of the self.