What Is the Approximate Maximum Amount That a Firm Should

question 85

Multiple Choice

What is the approximate maximum amount that a firm should consider paying for a project that will return $15,000 annually for 5 years if the opportunity cost is 10 percent?

• A)$33,520
• B)$56,860
• C)$62,540
• D)$75,000 PV = $15,000

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Definitions:

Grease Fittings

A small, nipple-like fitting threaded into a component for the injection of grease. A spring-loaded check ball inside the fitting allows grease in but keeps it from being pushed back out.

Zerk Fittings

Grease fittings installed on mechanical systems to allow for easy application of lubricant with a grease gun.

Control Arm Bushing

A component of the control arm in a vehicle's suspension system, made of rubber or polyurethane, designed to cushion the impact and reduce friction between the moving parts for smoother operation and handling.

Sway Bar Link

A component of a vehicle's suspension system that connects the sway bar to the suspension to help reduce body roll during turns.