The List Price of a New Van Was $30,000 at a Local

question 129

Multiple Choice

The list price of a new van was $30,000 at a local car dealership. However, a customer convinced the dealer to sell the van for $25,000 (the van had cost the dealer $20,000 one year earlier) . The van would cost the dealer $24,000 today. Inflation is 5% per year. The amount of profit that would be recognized by the dealer as a result of the sale using the constant dollar financial capital maintenance approach is:

• A) $10,000
• B) $4,000
• C) $5,000
• D) $9,000

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Definitions:

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as bipolar disorder or depression.

Apathy

A state of indifference, where an individual shows little or no emotion, interest, or concern towards emotional, social, or physical life.

Euphoria

A feeling of intense happiness and excitement, often more than what is considered normal under the circumstances.

Senile Dementia

A decline in cognitive function due to the aging process, often characterized by memory loss and impaired reasoning.