(Ignore Income Taxes in This Problem

question 119

Multiple Choice

(Ignore income taxes in this problem.) The Whitton Company uses a discount rate of 16%. The company has an opportunity to buy a machine now for $18,000 that will yield cash inflows of $10,000 per year for each of the next three years. The machine would have no salvage value. The net present value of this machine to the nearest whole dollar is:

• A) $22,460
• B) $4,460
• C) $(9,980)
• D) $12,000

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Definitions:

Immunity

The condition of being resistant or not susceptible to pathogens and the diseases they cause.

Prescription

A written order from a qualified healthcare professional allowing a patient to be issued a particular medicine or treatment.

Information Component

A fundamental part of information systems, encompassing data and its processing to provide valuable knowledge.

Toxin

A poisonous substance produced within living cells or organisms; can also refer to synthetic substances created to mimic these effects.