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:

Communities

Groups of people living in the same place or having a particular characteristic in common.

Northeast

A geographical region of the United States, typically considered to include New England and the Mid-Atlantic states.

Southwest

A geographic area in the United States generally including Arizona, New Mexico, Texas, Nevada, and parts of surrounding states, known for its arid climate and distinct cultural heritage.

Gender Typing

The process by which a child becomes aware of their gender and thus behaves accordingly by adopting values and attributes of members of the sex they identify as.