Suppose a Dairy Farmer Is Considering the Purchase of an Additional

question 53

Multiple Choice

Suppose a dairy farmer is considering the purchase of an additional milking machine at a price of $4000.She expects the discounted MRP of the machine in Year 1 to be $1700,in Year 2 to be $1500 and in Year 3 to be $1200,after which the machine has no value.The farmer should

• A)buy the machine because its present value is $400 more than its purchase price.
• B)buy the machine because its marginal revenue is $400 more than its marginal cost.
• C)be indifferent about the purchase because its present value is approximately equal to its purchase price.
• D)not buy the machine because its marginal revenue is $400 less than its marginal cost.
• E)not buy the machine because its present value is $400 less than its purchase price.

---

Definitions:

Application Form

A document designed to gather essential information from applicants, often used for jobs, schools, or programs.

Application Form

A document designed to gather essential information from applicants for a specific purpose, such as employment or enrolment.

Follow-Up E-Mail

A message sent to inquire or remind about a previous email, to ensure a response or action has been taken.

Stress Interview

A job interview designed to put the candidate under pressure and evaluate their performance in stressful situations.