Foley Company Financed the Purchase of a Machine by Making

question 37

Multiple Choice

Foley Company financed the purchase of a machine by making payments of $18,000 at the end of each of five years.The appropriate rate of interest was 8%.The future value of one for five periods at 8% is 1.46933.The future value of an ordinary annuity for five periods at 8% is 5.8666.The present value of an ordinary annuity for five periods at 8% is 3.99271.What was the cost of the machine to Foley?

• A)$26,448
• B)$71,869
• C)$90,000
• D)$105,600

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Definitions:

Positive Symptom

Symptoms of mental health conditions characterized by an excess or distortion of normal functions, such as delusions or hallucinations in schizophrenia.

Social Skills Training

A form of behavior therapy used to improve interpersonal abilities through the use of role-playing, modeling, and other techniques.

Nonverbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.

Skills Generalization

The process by which a person learns to apply learned skills in different situations or contexts.