Calculate the Lease Payment If the Net Cost of Buying

question 94

Multiple Choice

Calculate the lease payment if the net cost of buying is $40,000 and the net tax rate is 40% and the PVA is 5.486.

• A)$12,152.14
• B)$14,600.17
• C)$10,167.83
• D)$11,788.89

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Definitions:

Perfectly Inelastic Demand

A situation in which the demand for a product does not change as the price changes.

Perfectly Elastic Supply

describes a market situation where the quantity supplied can change infinitely in response to any change in price.

Elastic Demand

A situation where the demand for a product significantly changes in response to changes in the product's price.

Total Revenue

The sum of money a company earns from selling goods or providing services over a specified time frame.