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Turk Manufacturing Is Considering Purchasing Two Machines

question 99

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Turk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: Turk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows:   Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Turk purchase? A)  Only Machine A is acceptable. B)  Only Machine B is acceptable. C)  Both machines are acceptable, but A should be selected because it has the greater net present value. D)  Both machines are acceptable, but B should be selected because it has the greater net present value. E)  Neither machine is acceptable. Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Turk purchase?

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Definitions:

Ageism

Prejudice and discrimination against elderly people.

Elderly People

Individuals in society who are considered to be of an advanced age, often categorized as being 65 years or older.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Young Society

A population characterized by a significant proportion of young individuals, often indicating high fertility rates and potential for rapid growth.

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