Answer:
the answer is competition
Answer: option (B). knowledgeable user.
Explanation: knowledgeable user simply means If a particular danger is or should be commonly known by particular users of the product, the manufacturer need not warn those particular users. An example is a case of Stan, an air-conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock, Temp-Sets defense is knowledgeable user.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
<u>Solution and Explanation:</u>
<u>
Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=$10000
<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 10000
IRR 13%
=13% using IRR function in excel.
<u>Answer:3</u> IRR=17%
with salvage value
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 22000
IRR 17%
using IRR function in excel.