[The Following Information Applies to the Questions Displayed Below

question 57

Multiple Choice

[The following information applies to the questions displayed below.]
Rooney,Inc.is considering the purchase of a new machine costing $640,000.The machine's useful life is expected to be 8 years with no salvage value.The straight-line depreciation method will be used.The net increase in annual after tax cash flow is expected to be $147,000.Rooney estimates its cost of capital to be 14%.(The present value of a $1 annuity for 8 years at 14% is 4.639,and the present value of $1 to be received in 8 years is 0.351. )
-The net present value of the investment in the machine under consideration is:

• A)$40,520.
• B)$41,933.
• C)$60,480.
• D)$75,160.

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Definitions:

HR Policies

HR Policies are formal guidelines and procedures developed by an organization to govern its human resources management practices, ensuring consistency and compliance.

Organizational Strategy

A structured plan detailing how a company intends to deploy resources and capabilities to secure a competitive advantage.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed as a factor of production contributing to economic value.

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Information, understanding, or skill obtained through experience or education.