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:

Vestibular Senses

Vestibular senses are related to balance and spatial orientation, arising from the vestibular system in the inner ear, helping to maintain equilibrium and coordinate movements.

Movement

The process of changing the physical location or position of something, or a group's effort to advance their interests or beliefs.

Body Position

The spatial orientation or posture of an individual's body, which can affect physical health, perception, and cognitive processes.

Similarity

Similarity refers to the state of being alike or having common attributes, often used in comparing different entities to assess common traits or relationships.