machine can be sold for $ 50,000 . The machine is expected to have zero value at the end of the four-year period . What is the net present value of the investment ? Would the company want to purchase the new machine ? Income taxes are not considered . ( Points : 5 ) 21 . # TCO 10 # The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000 . The investment is expected to generate $ 400,000 in annual cash flows for a period of four years . The required rate of return is 12 %. The old machine can be sold for $ 50,000 . The machine is expected to have zero value at the end of the four-year period . 22 . ( TCO 11 ) The four cost categories in a cost of quality program are ( Points : 5 ) 22 . ( TCO 11 ) An advantage of financial cost of quality measures is that they ( Points : 5 ) 23 . ( TCO 11 ) Regal Products has a budget of $ 900,000 in 20X6 for prevention costs . If it decides to automate a portion of its prevention activities , it will save $ 60,000 in variable costs . The new method will require $ 18,000 in training costs and $ 120,000 in annual equipment costs . Management is willing to adjust the budget for an amount up to the cost of the new equipment . The budgeted production level is 150,000 units . Appraisal costs for the year are budgeted at $ 600,000 . The new 24 . ( TCO 12 ) The costs associated with storage are an example of which …..? ( Points : 5 ) 25 . ( TCO 12 ) Liberty Celebrations , Inc ., manufactures a line of flags . The annual demand for its flag display is estimated to be 100,000 units . The annual cost of carrying one unit in inventory is $ 1.60 , and the cost to initiate a production run is $ 30 . There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year , the first of which is to be run immediately . Liberty Celebrations has 250 business days per year . Assume that sales occur uniformly throughout the year and that production is instantaneous . If Liberty Celebrations does not maintain a safety stock , the estimated total carrying cost for the flag displays for the coming year is the estimated total setup cost for the flag displays for the coming year is ( Points : 5 ) Essay