A Computer You Are Considering for Your Business Would Add

question 5

Essay

A computer you are considering for your business would add $4,000 per year to your profit. It would cost $400 a year to buy a complete maintenance contract so that you would never have repair and upkeep expense. The obsolescence depreciation is 25% a year. The going market interest rate is 5%. Assume all costs and revenue occur at the end of the year. What is the maximum you should be willing to pay for the machine?

---

Definitions:

Categorical Proposition

A statement that asserts or denies that all or some of the members of one category are included in another.

Singular Term

A term that refers to one and only one object.

Refers

Refers pertains to the action of mentioning or alluding to something.

Categorical Propositions

Statements that assert or deny that all or some members of one category are included in another category.