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

question 162

Multiple Choice

Use the information below to answer the following question(s) .
Miami Marine 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:

-The net present value of the B14 Model is closest to

• A) $17,395 positive.
• B) $21,930 negative.
• C) $38,455 positive.
• D) $358,455 positive.

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Definitions:

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real interest rate which is adjusted.

Money Supply

The total amount of money available within an economy, including cash, coins, and balances in bank accounts, which can affect inflation, interest rates, and economic growth.

Discretionary Aggregate Demand

Demand for goods and services in the economy that is influenced by government policy decisions, beyond automatic stabilizers.

Economic Tradition

The historical and cultural practices, beliefs, and philosophies that influence and shape an economy's structure, policy, and development.