Thompson Corporation Is Considering the Purchase of a New Piece

question 45

Essay

Thompson Corporation is considering the purchase of a new piece of machinery. Thompson expects the new machinery to increase its revenues by $70,000 at the end of year 1, $60,000 at the end of year 2, and $50,000 at the end of year 3 at which point the machinery will have exhausted its useful life. If the interest rate is 4%, what is the most Thompson should be willing to pay today for this piece of machinery?

---

Definitions:

Social Media Jobs

Employment roles focused on creating, curating, and managing content on social media platforms, as well as engaging with the audience.

Roles

Roles refer to the specific functions or responsibilities assigned to individuals or groups within an organization or process.

Flat Salary Cap

A fixed limit on the total amount of salary a team can pay its players, which does not increase annually.

PayScale

An online database of salary, benefits, and compensation information, allowing individuals and employers to compare and analyze pay data across industries and roles.