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A New Pinball Machine Will Generate $3,000 in Additional Revenue

Question 8

Multiple Choice

A new pinball machine will generate $3,000 in additional revenue each year for a game arcade.It has a useful life of three years.Assume that each year's income is received at the end of the year.If the interest rate is 10 percent (0.10) per year,,what is the present value of a new pinball machine to the arcade?


A) $6,761.83
B) $8,181.82
C) $9,000.00
D) $7,460.56
E) $8,206.61

Correct Answer:

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