Fergus Company is considering the purchase of a machine that will save the company $4,000 per year in operating costs for a period of seven years. The most it should pay for the machine is equal to
A) $4,000 times the present value of an ordinary annuity for 7 periods.
B) $28,000.
C) $4,000 divided by the future value of a single sum at the end of 7 periods.
D) $4,000 times the future value of an ordinary annuity for 7 periods.
A
You might also like to view...
Marketing research studies often focus on your customers or potential customers and rarely are ex-customers analyzed
Indicate whether the statement is true or false
______ is the ability to get things done in a manner that suits one’s goals.
a. Inspiration b. Power c. Vision d. Mission
Peter Drucker stated that since it is the customer who defines value, the business enterprise has only two business functions: marketing and innovation.
Answer the following statement true (T) or false (F)
Porches & Verandas, Inc, agrees to build a screen porch for Quinn, but fails to complete the job. Quinnhires Ramadas, Inc, to finish the project. Quinn may recover from Porches & Verandas
a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach.