When Deciding to Buy a New Computer, All of the Following

question 274

Multiple Choice

When deciding to buy a new computer, all of the following should be considered except for the

• A)cost of the new computer.
• B)cost of the old computer.
• C)games that come with the new computer.
• D)warranty on the new computer.

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Definitions:

Internal Rate of Return (IRR)

The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments by calculating the discount rate that makes the net present value of all cash flows from the investment equal to zero.

Straight-Line Depreciation

A calculation for distributing the expense of a tangible asset over its lifespan in uniform annual payments.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.