A Company Buys a Color Printer That Will Cost $16,000

question 31

Multiple Choice

A company buys a color printer that will cost $16,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 8%?

• A) -$3155
• B) -$3606
• C) -$4057
• D) -$4507

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Definitions:

Limbic System

The limbic system is a complex system of nerves and networks in the brain, involved in emotions such as fear and pleasure.

Neural Connections

Neural connections, known as synapses, are the points at which neurons communicate with each other through neurotransmitters.

Diencephalon

The diencephalon is a division of the brain located between the cerebrum and the midbrain, comprising structures such as the thalamus and hypothalamus, involved in sensory and neural function.

Basal Nuclei

Groups of neurons located deep within the cerebral hemispheres that are involved in controlling movement and coordination.