Table 10 -2. -A Restaurant Is Trying to Determine the Lowest Total Cost

question 32

Multiple Choice

Table 10 -2.

-A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 10 -2, which freezer should the restaurant purchase?

• A) Freezer A
• B) Freezer B
• C) Both Freezers
• D) Cannot tell without more information.

---

Definitions:

Private Sector

The part of the economy that is run by individuals and companies for profit, as opposed to being controlled by the government.

Laffer Curve

A theoretical representation of the relationship between tax rates and tax revenue, suggesting that lower tax rates can lead to higher revenues under certain conditions.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary depending on the type of tax and jurisdiction.

Tax Revenue

Government income generated from taxes levied on individuals and businesses.