A Machine Costs $1,000,has a Three-Year Life,and Has an Estimated

question 46

Multiple Choice

A machine costs $1,000,has a three-year life,and has an estimated salvage value of $100.It will generate after-tax annual cash flows (ACF) of $600 a year,starting next year.If your required rate of return for the project is 10%,what is the NPV of this investment? (Round your answer to the nearest $10. )

• A)$490
• B)$570
• C)$900
• D)-$150

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Definitions:

Electrode

A conductor through which electricity enters or leaves an object, substance, or region, used for various applications including medical devices and experiments.

Electric Shock

A sudden discharge of electricity through a part of the body, which can cause various physiological reactions, from minor discomfort to severe injury or even death.

Concept

An abstract idea or a mental symbol typically representing classes of items or events that share common attributes.

Medial Forebrain Bundle

A pathway in the brain involved in the mediation of reward and pleasure through the transmission of dopamine.