Bangin Inc

question 77

Multiple Choice

Bangin Inc. financed the purchase of a machine by making ten annual payments of $19,000 with the first payment due today. The purchase cost of the machine is considered to be the present value of those payments. What was the purchase cost of the machine to Bangin assuming a discount rate of 9%? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.)

• A) $80,258
• B) $190,000
• C) $121,935
• D) $132,910

---

Definitions:

Altruism

The selfless concern for the well-being of others without expecting any reward or benefit in return.

Egoism

An ethical theory that treats self-interest as the foundation of morality.

Reciprocity Principle

A social norm suggesting that people are likely to respond to actions with similar actions, contributing to cooperation and social exchange.

Compliance

Superficial, public and transitory change in behaviour and expressed attitudes in response to requests, coercion or group pressure.