Author Question: Equity refers to the A) the amount of cash used to buy an asset. B) the amount of a purchase ... (Read 101 times)

nramada · **on:** Aug 10, 2018

Equity refers to the

A) the amount of cash used to buy an asset.
B) the amount of a purchase that is has been financed via debt.
C) amount borrowed to buy an asset.
D) free and clear ownership of an asset.

Question 2

Assume that a buyer purchased a piece of capital equipment for 13,000. It is estimated that the piece of equipment will result in additional profits of 500 monthly for three years after considering the expense of its operation.

In this scenario, the ROI on the purchase would be ________ (rounded) over the three year period.
A) 1384 B) 138 C) 72 D) 13.8