On january 1, rosewater company leased a computer for 4 years at a monthly rent of $80, payable at the end of each month. due to the rate of technical change, the computer is expected to become obsolete within 5 years. at the inception of the lease, the computer was retailing for $3,450. had rosewater chosen to purchase the computer instead of leasing it, they could have borrowed the funds at 10%. at a 10% interest rate, the present value of the lease payments is $3,154. rosewater does not know the rate implicit in the lease. for the month of january, rosewater should report (to the closest dollar) interest expense of

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; trojan horse;