A Machine Costs $25 000

question 62

Multiple Choice

A machine costs $25 000. It is expected to generate annual revenue of $8000 and annual expenses of $2000 each year for five years. The required rate of return is 12 per cent. What is the net present value of the machine?

• A) $21 630
• B) $28 840
• C) ($3370)
• D) $3840

---

Definitions:

Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as major factors influencing personality and behavior.

Ego

A part of the psyche that mediates between the conscious, the unconscious, and reality, often involved in self-perception and personal identity.

Temptation

A desire to do something, especially something wrong or unwise.

Past Experiences

The accumulation of knowledge, skills, and memories that a person has gained from previous activities or events in their life.