It's C. I just took it and it definitely is C
Answer:
A) $83
Explanation:
First, find aftertax OCF per year
aftertax OCF = (Operating benefit - depreciation)*(1-tax) +depreciation
Depreciation per year = 10,000/5 = 2,000
Tax = 34%
aftertax OCF per year = (3,000 - 2,000)*(1-0.34) + 2,000
= 660 +2,000
= 2,660
Next, find the PV of the aftertax OCF per year. It is an annuity;
PMT = 2,660
N = 5
I/Y = 10%
FV = 0
then CPT PV = 10,083.493
Subtract the initial cost of the machine to find the Net Present Value (NPV);
NPV = -$10,000 + $10,083.493
NPV = $83.493
To complete the statement above:<span>
Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers' desires and marketplace changes.
Dynamic pricing is a way to deal with setting the cost for an item or administration that is exceedingly adaptable. The objective of dynamic valuing is to permit an organization that pitches merchandise or administrations over the Internet to modify costs on the fly because of market requests.
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