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

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Definitions:

Monarchical Government

A form of government where a monarch (king, queen, emperor) holds sovereign authority until death or abdication, often inheriting their position by birth.

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Greatest Threat

The largest or most severe danger or challenge facing an individual, group, or institution.

Iroquois Confederacy

A historic union of six Native American tribes living in the northeastern United States, known for their democratic governing system.