Suppose a New Piece of Capital Equipment Will Deliver a Stream

question 81

Multiple Choice

Suppose a new piece of capital equipment will deliver a stream of MRPs of $1000 each year for 3 years (beginning one year from today) .What is the present value of this stream of benefits,assuming that the annual rate of interest is 5%?

• A)$863.86
• B)$952.38
• C)$1000.00
• D)$2591.58
• E)$2723.25

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Definitions:

Aspiration Group

A social group that a person admires or seeks to emulate because of its status, lifestyle, or achievements.

Membership Privileges

Special rights, advantages, or services available exclusively to members of a specific group or organization.

Dissociative Group

A group whose values or norms an individual rejects or opposes, influencing their purchasing decisions and behaviors.

Net Promoter Score

Net Promoter Score is a measurement tool used to assess customer loyalty and satisfaction by asking consumers how likely they are to recommend a company's products or services to others.