A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. If the interest rate is seven percent, what is the net present value of purchasing the tractor?
Multiple Choice Quizzes with Answer in English (Page: 425)
When dealing with present value, a higher interest rate:
If the interest rate is five percent, the present value of $200 received at the end of five years is:
If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year?
If the interest rate is 5%, what is the present value of ten dollars received one year from now?
The opportunity cost of receiving ten dollars in the future as opposed to getting that ten dollars today is:
Scarce resources are ultimately allocated toward the production of goods most wanted by society because:
As more firms enter an industry
The primary inducement for new firms to enter an industry is:
Which of the following signals to the owners of scarce resources are the best uses of those resources?
Which of the following is an implicit cost of going to college?
Which of the following is an implicit cost to a firm that produces a good or service?
Economic profits are:
Accounting profits are:
What is the antonym of “Gloomy”
What is the synonym of “Exhausted”
____ glass is, for all practical purposes, a solid, its molecular structure is that of a liquid.
The intellectual can no longer be said to live ____ the margine of society.
If a substance is cohesive, it tends to –
He stopped his car ____ when the light turned red.