Answer:
Option D,the more you consume of a good,the less benefit you receive, is the correct answer.
Explanation:
The law of diminishing marginal benefits or law of diminishing marginal utility states and I quote" The marginal utility from an additional unit of consumption declines as the quantity of consumed goods increases"
Satisfaction from consumption is at peak at early stage of consumption.
Consider yourself as been thirsty,hence,the satisfaction you derive from first bottle of soft drink is high since that is when thirst is high,compared to a lower satisfaction from second bottle which was just taken for fun and not to quench thirst.
Answer: Lease Equipment as it is cheaper than Buying the Equipment
Explanation:
The better option would be the one with the lower Present Value between Leasing and Buying.
<u>Buying The Equipment </u>
Cost is $40,000 and then there will be a negative Cashflow of $2,000 every year until the 5th year.
Since the Cashflow is constant it can be treated like an annuity. Using the table attached find the PVIFA factor for 5 years at 7%.
PV = -40,000 + (-2,000 * 4.100 ( PVIFA for 5 periods at 7%))
= 40,000 - 8,200
= -$48,200
<u>Cost of Leasing </u>
Leasing would cost $10,000 per year for 5 years.
PV = -10,000 * 4.100 ( PVIFA for 5 periods at 7%)
= -$41,000
You should Lease the Equipment because it is cheaper.
Im not trying to be sexist or anything but the reason that men get payed more is because they are supposed to be harder workers than women. so companies would rather pay more for harder workers than not.
hope this helps :D
<span>If a painter who is contracted to paint the exterior of a house does NOT finish the job, he has violated his duty to perform.</span>