Reed Is Interested in Purchasing a Machine for His Business

question 22

Multiple Choice

Reed is interested in purchasing a machine for his business that costs $10,000. The machine would be used for three years and generate $4,000 per year of cash flow. After three years, the machine could be sold for $3,000. What is the net present value of the machine at 12%?

• A) $1,742.67
• B) $3,200.23
• C) $2,012.18
• D) $4,158.40

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Definitions:

Heterosexuals

Individuals who are romantically and sexually attracted to people of the opposite sex.

Family Life

The everyday dynamics, interactions, and relationships among members within a family unit.

X Chromosome

One of the two sex chromosomes, the X chromosome plays a crucial role in the determination of genetic traits and can be found both in males (XY) and females (XX).

Genetic Component

The part of a characteristic, condition, or disease that is influenced by one's genes or heredity.