Alien Corp

question 21

Multiple Choice

Alien Corp. is considering the purchase of a new truck which costs $14,340. The truck is expected to save $3,600 in operating costs annually for the next 7 years. How low can the annual cost savings be and still provide a 15% return? Ignore income taxes.

• A) $5,967
• B) $475
• C) $7,458
• D) $3,441

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Definitions:

Tariff Negotiations

The process where countries discuss and agree on the tax rates to be applied to imported goods in order to protect domestic industries or raise government revenue.