A Computer You Are Considering for Your Business Would Add

question 14

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. If the going interest rate went up to 10%, how much would you be willing to pay for the machine?

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Definitions:

Hardwired

The physical interconnection of electric and electronic components with wire.

Label Instruction

A programmable logic controller instruction that assigns an alphanumeric designation to a particular location in a program. This location is used as the target of a jump, skip, or jump to subroutine instruction.

Logical True

An assertion or condition in logic that is considered to be true or affirmative in the context of boolean algebra.

Immediate I/O Instruction

An immediate I/O instruction in programmable logic controllers (PLCs) executes input or output operations instantly, bypassing the usual scan cycle sequence for real-time response.