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Sam is considering the purchase of a vending machine to sell sodas. The cost of the vending machine is $3,400. Sam estimates that the vending machine will last for five years and will provide net income of $800 each year for its lifetime. If Sam pays $3,400 for the vending machine today, the net present value at 7% is $____.
Investment Spending
Expenditures on new physical assets like machinery, buildings, or infrastructure, intended to increase productive capacity.
Planned Investment
Investments that are part of a predetermined plan, often by governments or large organizations, focusing on achieving long-term objectives or economic development.
Aggregate Demand Curve
A curve showing the total demand for goods and services within an economy at various price levels.
Consumption
The action of using goods and services to fulfill needs or desires; usually the largest component of GDP.
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