Butler Corporation is considering the purchase of new equipment costing $78,000. The projected annual after-tax net income from the equipment is $2,800, after deducting $26,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 11% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 11% 1 0.9009 2 1.7125 3 2.4437 4 3.1024 What is the net present value of the machine

answer; conceptual skills;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.