(Present Value Tables Are Needed

question 171

Multiple Choice

(Present value tables are needed. ) Cleveland Cove Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair.The company has narrowed their choices down to two: the B14 Model and the F54 Model.Financial data about the two choices follows.

What is the net present value of the F54 Model?

• A)$15,260 positive
• B)$48,605 negative
• C)$191,395 positive
• D)$156,395 positive

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a public marketplace.

Colluded

When two or more parties come together, often in secret, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair market advantage.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various price levels.