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:

Carolene Products Co.

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Brandenburg v. Ohio

A 1969 Supreme Court decision that established the government cannot punish inflammatory speech unless that speech is likely to incite imminent lawless action.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases involving issues of federal law.

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Expressions related to government, public policy, or elections, often protected from government restriction in democratic societies.