(Ignore Income Taxes in This Problem

question 86

Multiple Choice

(Ignore income taxes in this problem.) Joe Flubup is the president of Flubup, Inc. He is considering buying a new machine that would cost $25,470. Joe has determined that the new machine promises an internal rate of return of 14%, but Joe has misplaced the paper which tells the annual cost savings promised by the new machine. He does remember that the machine has a projected life of 12 years. Based on these data, the annual cost savings are:

• A) It is impossible to determine from the given data.
• B) $2,122.50
• C) $4,500.00
• D) $4,650.00

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Definitions:

Transactional Role

The aspect of a job that involves routine duties and day-to-day administration rather than strategic planning or relationship building.

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

HRM Planning

The process an organization uses to ensure that it has the right amount and the right kind of people to deliver a particular level of output or services in the future.

Operational Activities

The day-to-day tasks and processes that are necessary for an organization to function and achieve its business objectives.