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

question 71

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 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%.

• A) $15,209.84
• B) $9,607.33
• C) $14,410.99
• D) $10,338.56

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Definitions:

Dark Triad

A group of three personality traits: narcissism, Machiavellianism, and psychopathy, which are considered socially malevolent and associated with a callous-manipulative interpersonal style.

Dark Triad

A set of three personality traits: narcissism, Machiavellianism, and psychopathy, which are associated with a callous-manipulative interpersonal style.

Psychopathy

A personality disorder characterized by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.

Machiavellianism

A personality trait characterized by a cynical disregard for morality and a focus on self-interest and personal gain.