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

Identify the primary stakeholders responsible for compensation strategies in Canadian organizations.

Recognize different types of legislation related to employee compensation.

Understand the principles behind different compensation-level policies.

Analyze the implications of compensation strategies for special employee groups.

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Definitions:

Divorce Agreement

A legally binding document outlining the resolution of matters concerning divorce, including asset division, alimony, and child custody.

Fraudulent Misrepresentation

A false statement made knowingly to deceive another party, leading them to enter into a contract or agreement.

Assertion

An assertion is a confident and forceful statement of fact or belief.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly to induce another party to enter into a contract, resulting in harm or loss.