A car rental company will earn a net income of $6,000 per year on a new car for the first three years of its life. After three years, the car will be worthless. If the interest rate is 10 percent (0.10) per ear, what is the present value of the car to the car rental company? (Assume that each year's income is received at the end of the year.)
a. $16,413.22
b. $14,921.11
c. $18,000.00
d. $16,363.62
e. $13,523.67
B
You might also like to view...
Assume that the economy is in a recession and consumers are expecting a fall in their income levels. This will cause a(n):
A) left shift in the market demand for all goods. B) right shift in the market demand for all goods. C) increase in the total quantity demanded of all goods. D) decrease in the total quantity demanded of all goods.
According to your authors, which action below clearly restricts competition?
A) A large firm raises its price. B) A large firm lowers its price. C) Government deregulates an industry. D) Antitrust legislation restricting other suppliers from entering into a market.
In the United States
a. only those who have made previous contributions to the program are entitled to receive the benefits of social insurance programs b. anyone with children is entitled to receive the benefits of social insurance programs c. anyone over 65 is eligible to receive the benefits of social insurance programs d. all taxpayers are eligible to receive the benefits of social insurance programs e. all poor families with children are eligible to receive the benefits of social insurance programs
A tax that is levied in such a way that low-income taxpayers pay a greater proportion of their income toward taxes than do high-income taxpayers is called a:
A. proportional tax. B. progressive tax. C. regressive tax. D. flat tax.