If the Implicit Rental Price of an Airliner Is $200,000

question 161

Multiple Choice

If the implicit rental price of an airliner is $200,000 per year, the interest rate is 5 percent, and depreciation is $60,000 per year, then the purchase price of the airliner is

• A)$1,300,000.
• B)$4,000,000.
• C)$2,800,000.
• D)$4,060,000.
• E)$5,200,000.

---

Definitions:

Stator Windings

are the stationary part of an electric motor or generator, consisting of coils wound around a core that generates a magnetic field when electricity is passed through.

Wye Connection

A method of connecting three-phase electrical circuits where the ends of each phase are connected at a single point, forming a Y shape.

Delta Connection

A method of connecting three-phase electrical circuits where the start of each phase is connected to the end of the next, forming a triangle (delta shape).

Diodes

Semiconductor devices that allow current to flow in one direction only, used in various electrical applications.