Suppose a Machine Generates $500 Worth of Revenue at the End

question 30

Multiple Choice

Suppose a machine generates $500 worth of revenue at the end of each of the next three years, at which time it can be sold to a salvage company for $350. If the annual rate of interest is 0.08, what is the maximum amount a business would pay for this machine if maintenance costs are $100 per year?

• A)$1506
• B)$1309
• C)$9567
• D)$1096

---

Definitions:

Self-enhancing

Refers to the process of improving one's own image, qualities, or capabilities, often through positive thinking and actions.

Overshare

The act of disclosing too much personal information or details, often in inappropriate or unwelcome contexts.

Group Problem Solving

A collaborative effort by group members to identify, analyze, and find solutions to collective challenges or issues.

Individual Responsiveness

The degree to which a person responds to a specific treatment, intervention, or activity, which may vary greatly among individuals.