Australia Unlimited Can Purchase a New Assembler for $15,052 That

question 47

Multiple Choice

Australia Unlimited can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6000 per year for five years.Calculate the NPV of the assembler if the required rate of return is 12%.(Round your answer to the nearest $1.)

• A)$1056
• B)$4568
• C)$7621
• D)$6577

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Definitions:

Sustainable Income

Revenue that can be maintained for the foreseeable future without diminishing resources or opportunities.

Extraordinary Items

Events and transactions that are distinguished by their uncommon nature and by the infrequency of their occurrence, impacting a company's financial statements.

Continuing Operations

The parts of a business expected to continue operating into the foreseeable future, excluding discontinued operations.

Production Phase

The stage of business operations involved in the manufacturing or production of goods and services.