Mid-Town Plumbers Inc

question 60

Multiple Choice

Mid-Town Plumbers Inc.is considering the purchase of a machine costing approximately $4000.Using a discount rate of 20 per cent,the present value of future cash inflows are calculated to be $4000.To yield at least a 20 per cent return,the actual cost of the machine should not exceed the $4000 estimate by more than:

• A) $4000
• B) $8000
• C) $ 800
• D) $ 0

---

Definitions:

Test-statistic

A value calculated from sample data during hypothesis testing, used to determine whether to reject the null hypothesis.

Margin of Error

The margin of error is a statistic expressing the amount of random sampling error in a survey's results, indicating the range within which the true population parameter is expected to lie with a certain level of confidence.

Standard Deviation

a statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the numbers are.

Gas Stations

Retail establishments that sell fuel and often other services or goods for motor vehicles.