Los Gatos Shop Is Considering the Purchase of a Used

question 90

Multiple Choice

Los Gatos Shop is considering the purchase of a used wide-format printer costing $9,600. The wide-format printer would generate a net cash inflow of $4,000 per year for three years. At the end of three years, the printer would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation with no mid-year convention. What is the net present value for the press, assuming no taxes are paid?

• A)$2,400
• B)$9,948
• C)$348
• D)$9,600

---

Definitions:

One-way ANOVA

A statistical test that compares the means of three or more independent groups to see if there is a significant difference among them.

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States, known for its liberal policies.

T-test

A statistical test used to compare the means of two groups and determine if they are significantly different from each other.

F-ratio

A statistic used to compare the variances between groups in an ANOVA test to determine if the groups come from populations with different variances.