NorthCoast Inc

question 109

Multiple Choice

NorthCoast Inc.is considering the purchase of a 3-D printer that will require an initial investment of $15,000.The printer will produce parts at a net savings of $4000 per year in operating costs.The company will use a discount rate of 8.5%.What is the NPV of this equipment to the nearest dollar?

• A)$5000
• B)$15,703
• C)$703
• D)$763

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Definitions:

E-Books

Electronic versions of printed books which can be read on a computer or a specifically designed handheld device.

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Tickets purchased for the purpose of attending sporting events.

Indifference Curve

A graphical representation of different bundles of goods between which a consumer is indifferent.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given level of income, reflecting the trade-off between them.