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

question 112

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) $2,000
• B) $9,607
• C) $14,411
• D)$24,018

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Definitions:

Console Application

A computer program designed to be used through a text-only computer interface, such as a text terminal, the command-line interface of some operating systems, or a text-based user interface.

Quiz Scores

Quiz scores typically represent the numerical outcomes or grades obtained from evaluations or tests in an educational context, indicating the level of understanding or performance.

Average

The numerical result obtained by dividing the sum of two or more quantities by the number of quantities.

Initialize

The process of setting initial values to variables or starting conditions for an object or application.