Solve the Problem Using Inductive Reasoning

question 94

Multiple Choice

Solve the problem using inductive reasoning.
-The following graph shows the average monthly cost for satellite television for each year from 2005 through 2012. Assuming the trend continues, use the graph to predict the average monthly Cost for satellite TV in 2013.

• A) $42
• B) $68
• C) $48
• D) $58

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Definitions:

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Cash Inflows

Money received by a business from its operational, financing, or investment activities.

Investment Projects

Initiatives undertaken by a business or organization to invest in new assets, technology, or resources with the expectation of generating future benefits.

Total-Cost Approach

A pricing strategy that considers all costs associated with producing and delivering a product or service to determine its selling price.