19 . ( TCO 9 ) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division . Of a $ 20,000,000 bond issuance , the Electric Mixer Division used $ 14,000,000 and the Electric Lamp Division used $ 6,000,000 for expansion . Interest costs on the bond totaled $ 1,500,000 for the year . What amount of interest costs should be allocated to the Electric Mixer Division ? ( Points : 5 ) 20 . ( TCO 10 ) The net present value method focuses on : ( 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 $ 350,000 in annual cash flows for a period of four years . The required rate of return is 14 %. 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 . 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 ) 22 . ( TCO 11 ) Nonfinancial measures for internal quality performance include all but which of the following ? 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 prevention procedures will save appraisal costs of $ 30,000 . Internal failure costs average $ 15 per failed unit of finished goods . The internal failure rate is expected to be 3 % of all completed items . The proposed changes will cut the internal failure rate by one-third . Internal failure units are destroyed . External failure costs average $ 54 per failed unit . The company ' s average external failures average 3 % of units sold . The new proposal will reduce this rate by 50 %. Assume all units produced are sold and there are no ending inventories . How much will internal failure costs change if the internal product failures are reduced by 50 % with the new procedures ? 24 . ( TCO 12 ) Obsolescence is an example of which cost category ?