A Currently Used Machine Costs $10,000 Annually to Run

question 50

Multiple Choice

A currently used machine costs $10,000 annually to run.What is the maximum that should be paid to replace the machine with one that will last three years and cost only $4,000 annually to run? The opportunity cost of capital is 12 percent.

• A)$2,000
• B)$9,607
• C)$14,411
• D)$24,018

---

Definitions:

Specific Learning Disability

A disorder in one or more of the basic psychological processes involved in understanding or using language, spoken or written, which may manifest itself in an imperfect ability to listen, think, speak, read, write, spell, or do mathematical calculations.

Visual Handicap

A condition limiting a person's ability to see, ranging from partial vision loss to total blindness.

Intellectual Disabilities

Disabilities characterized by significant limitations both in intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Incremental

Refers to a process of adding or making changes in a series of small, gradual steps.