Suppose a Roofing Contractor Is Considering the Purchase of an Additional

question 30

Multiple Choice

Suppose a roofing contractor is considering the purchase of an additional truck at a price of $35 000.He expects the discounted MRP of the truck in Year 1 to be $7000,in Year 2 to be $6000,in Year 3 to be $5000,after which he can sell the truck at a present value of $14 000.This contractor should

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

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Definitions:

Splenic Artery

A major blood vessel that supplies oxygen-rich blood to the spleen, branching from the abdominal aorta.

Ascending Aorta

The initial section of the aorta that rises up from the left ventricle of the heart, distributing oxygen-rich blood to the rest of the body.

Korotkoff Sounds

The sounds medical personnel listen for when they are taking blood pressure using a sphygmomanometer, which indicate the resumption of blood flow to the artery.

Turbulent Blood Flow

A type of blood flow characterized by chaotic changes in pressure and flow velocity, often associated with cardiovascular issues.