Management accountants should have little or no role in deciding on a company's strategy

Indicate whether this statement is true or false.

Answer: FALSE

Business

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In the context of decision making in groups, the job of a devil's advocate is to create

A. potentially destructive conflict. B. the likelihood of constructive conflict. C. a structured debate. D. a task-related conflict. E. process related problems.

Business

Creighton Industries is considering the purchase of a new strapping machine, which will cost

$150,000, plus an additional $10,500 to ship and install. The new machine will have a 5-year useful life and will be depreciated to zero using the straight-line method. The machine is expected to generate new sales of $45,000 per year and is expected to save $16,000 in labor and electrical expenses over the next 5-years. The machine is expected to have a salvage value of $20,000. Creighton's income tax rate is 35%. Creighton uses a 12.5% discount rate for capital budgeting purposes. What is the machine's NPV? A) $22,153 B) $29,888 C) $27,894 D) $25,062

Business