Suppose a machine generates $500 worth of revenue at the end of each of the next three years, at which time it can be sold to a salvage company for $350. If the annual rate of interest is 0.08, what is the maximum amount a business would pay for this machine if maintenance costs are $100 per year?
A. $1506
B. $1309
C. $1096
D. $9567
Answer: B
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Purchasing power parity (PPP) measurements of income are a way to make international comparisons by correcting for national differences in
A) unemployment. B) inflation. C) prices of goods and services. D) economic growth. E) government subsidies.
For a person earning $15,000, the average tax rate is:
A. 10%
B. 15%
C. 12.5%
D. 11.7%
Which statement about inflation is correct?
A. The redistributive effects of inflation are arbitrary with respect to people and groups in society. B. Inflation "subsidizes" those who receive relatively fixed money income. C. Inflation will decrease the real value of property assets and increase the real value of fixed-value assets. D. Families are always hurt by inflation.
Which of the following would result in lower costs?
A. Lower prices for inputs B. Using fewer inputs per unit of output C. Increasing efficiency D. All of the above