A Large Printing Press Sells for $225,000 When It Is

question 122

Multiple Choice

A large printing press sells for $225,000 when it is new. After that, its value decreases 25% each year. Write a geometric sequence that gives the value of the press at the end of each of the first 5 years after it is purchased. What is the common ratio r for this sequence? Construct a line graph for this sequence.

• A) $146,250.00, $95,062.50, $61,790.63, $40,163.91, $26,106.54; r = 0.75.
• B) $168,750.00, $126,562.50, $94,921.88, $71,191.41, $53,393.55; r = 0.75.
• C) $128,017.50, $83,211.38, $54,087.39, $35,156.81, $22,851.92; r = 0.65.
• D) $150,500.00, $105,350.00, $73,745.00, $51,621.50, $36,135.05; r = 0.7.
• E) $157,500.00, $110,250.00, $77,175.00, $54,022.50, $37,815.75; r = 0.7.

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Definitions:

Corporate Profits Tax

A tax imposed on the income or profit of corporations.

Long Run

A time frame where every element of production and expenses can vary, enabling complete adaptation to any shifts.

Capital/Labor Intensity

A measure of the ratio of capital to labor in the production process, indicating whether an economy or sector relies more on capital investment or labor.

Corporate Profits Tax

A tax imposed by governments on the income earned by companies and corporations.