A shipping company can buy either a new truck or a used truck. Each truck will generate $4,000 in net revenue per year. But the new truck has a useful life of three years, whereas the used truck has a useful life of only two years. If the interest rate is 5 percent (0.05) per year, what is the difference in value between the two trucks? (Assume that each year's revenue is received at the end of
the year.)
a. $0
b. $4,000.00
c. $3,455.35
d. $1,185.19
e. $8,000.00
C
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The stock of capital ________ with any gross investment and ________ with any depreciation
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
Which of the following would likely be considered as a topic of microeconomics?
A) a nation's unemployment rate B) Gross Domestic Product C) the price of apples D) the effects of fiscal policy on the economy
The U.N.'s Millennium Aid Goal is to raise foreign aid levels to ________ percent of donor country GDP.
A. 15.0 B. 0.4 C. 0.7 D. 10.0
Suppose that Jane earns $10,000 in year 1 and $15,000 in year 2, while Jim earns $15,000 in year 1 and $10,000 in year 2. Is there income equality for the two individuals?
A. The annual data indicate equality, but the two-year data indicate inequality B. The annual data indicate inequality, but the two-year data indicate equality C. Both the annual and the two-year data indicate equality D. Both the annual and the two-year data indicate inequality