What Is the Actual Cash Value for a Computer with a Life

question 11

Multiple Choice

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?

• A)$1,800
• B)$1,286
• C)$1,643
• D)$2,300

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Definitions:

Random Variates

Randomly generated values that follow a specified distribution.

Assumption Cells

Cells in a spreadsheet model where key input values are entered, which are based on assumptions that affect the model's outcomes.

Random Numbers

Numbers generated in a sequence that lacks any predictable patterns, used in various simulations and cryptographic applications.

Monte Carlo Simulation

Monte Carlo Simulation is a computational technique that uses random sampling to estimate complex mathematical or physical systems' behaviors.