Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.):
Useful life 12 years
Yearly net cash inflow $ 60,000
Salvage value $ 0
Internal rate of return 14 %
Required rate of return 10 %
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
The initial cost of the equipment is closest to:
a) $(52,445)
b) $(15,885)
c) $(139,325)
d) $(95,885)

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not. 

Answer (non-data)