A Company Buys a Color Printer That Will Cost $18,000

question 71

Multiple Choice

A company buys a color printer that will cost $18,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%?

• A) -$4002
• B) -$5493
• C) -$3983
• D) -$4957

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Definitions:

Acidity

A measure of the ability of a solution to donate hydrogen ions (H+) and thereby lower its pH.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging typically from 0 (highly acidic) to 14 (highly basic).

pH

A scale used to specify the acidity or basicity of an aqueous solution, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are basic.

pH

a numeric scale used to specify the acidity or basicity of an aqueous solution, with values below 7 being acidic, above 7 being basic, and 7 being neutral.