Hazel Company Has Just Purchased Equipment That Requires Annual Payments

question 31

Multiple Choice

Hazel Company has just purchased equipment that requires annual payments of $40000 to be paid at the end of each of the next 4 years. The appropriate discount rate is 15%. What is the present value of the payments?

• A) $114199
• B) $160000
• C) $46975
• D) $150135

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Definitions:

Aqueous Solution

An Aqueous Solution is any solution in which water (H2O) acts as the solvent.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 to 14.

Alkyl Group

A group of atoms derived from an alkane, containing only carbon and hydrogen atoms, arranged in a chain.

Aspartic Acid

An amino acid that plays a vital role in the biosynthesis of proteins and in neurotransmitter release and synthesis.