Meg O’Byte wants to buy a new computer for her business for Internet access on a cable modem. The computer system cost is $5,100. The cable company charges $200 (including the cable modem) for installation and has a $50 a month usage fee for business, paid at the end of the month. Meg expects to buy the system with a $100 down payment, financing the balance at 8 percent over the next 4 years. She will sell the computer for $1,000 when she upgrades. She expects a $500 a month increase in cash flow and is in the 25 percent tax bracket.
a) The start-up costs are ______________.
b) The PVC is ___________.
c) The PVB is ________________.
d) The monthly payment for the computer is _____.

  • CreatedJuly 31, 2015
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