Three years ago, Astro Masters, Inc. purchased the three assets listed in the following table. The chief financial officer, Bill Moss, is presently trying to decide what to do with each asset. He has three options for each asset: (1) sell it; (2) keep it; and (3) sell it and replace it with an equivalent asset. The following information is provided to aid his decision.
Based on your calculations, what would be the total cash flows associated with selling and replacing Asset C with an equivalent asset?
a. $2,500
b. $5,500
c. $5,000
d. $4,500

Question

Three years ago, Astro Masters, Inc. purchased the three assets listed in the following table. The chief financial officer, Bill Moss, is presently trying to decide what to do with each asset. He has three options for each asset: (1) sell it; (2) keep it; and (3) sell it and replace it with an equivalent asset. The following information is provided to aid his decision.
  Based on your calculations, what would be the total cash flows associated with selling and replacing Asset C with an equivalent asset? 
a. $2,500
b. $5,500
c. $5,000
d. $4,500

Quizplus · Accepted Answer

The Answer of Three years ago, Astro Masters, Inc. purchased the three assets listed in the following table. The chief financial officer, Bill Moss, is presently trying to decide what to do with each asset. He has three options for each asset: (1) sell it; (2) keep it; and (3) sell it and replace it with an equivalent asset. The following information is provided to aid his decision.
  Based on your calculations, what would be the total cash flows associated with selling and replacing Asset C with an equivalent asset? 
a. $2,500
b. $5,500
c. $5,000
d. $4,500

Three Years Ago, Astro Masters, Inc