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The net present value of the cost of operating a machine for the next 4 years is 6,340. The discount rate used is 10%.
What is the equivalent annual cost and the present value of the cost in perpetuity of operating this machine?
Use discount factors to 3 decimal places.
Suggested Answer: C
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8 comments · newest first
MA
Marsha
12 months ago
Is it really that straightforward? I’m not so sure.
RE
Rebbeca
1 year ago
Totally agree, B makes the most sense here!
HE
Herman
1 year ago
Wait, how can the present value be higher than the NPV? Sounds off.
LU
Luann
1 year ago
I think B is the correct answer!
FE
Felton
1 year ago
Equivalent annual cost should be lower than the total NPV, right?
AN
Anthony
1 year ago
The options mention a few different Avaya products, so I'll need to review my notes on their capabilities to determine the right one for outbound campaign management.
TO
Tom
1 year ago
Alright, I've got a few ideas. I think the key is understanding whether the database instance needs to be up or not.
TR
Trina
1 year ago
This one seems pretty straightforward. I'm pretty confident the right answer is B, the right to vote on important company matters.