Use the Information Below to Answer the Following Question(s)

question 135

Multiple Choice

Use the information below to answer the following question(s) .The following data are available for a heating, ventilating, and air conditioning (HVAC) vent manufacturer started as a new company four years ago when the construction cost index was 120:
* = "of long-term assets at historical cost"
-What is the net book value (NBV ) of the long-term assets at current cost at the end of year 4?

• A)$640,000
• B)$426,667
• C)$720,000
• D)$810,000
• E)$540,000

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Definitions:

Price-Elastic

A characteristic of goods or services for which their demand or supply significantly changes with small changes in price.

Mass Transit

Public transportation systems designed to move large numbers of people efficiently via buses, trains, subways, and other modes of transport.

Price Elasticity

A gauge of the responsiveness of the quantity of a good supplied or sought after to fluctuations in its price.