Given a cost of 70,000 now year 0 15,000 in year 10 an annual cost of 2000 and an annual revenue of 15,000 over 20 years n what is the maximum that you'd be willing to pay for capital asset if you expected a 6% return on your investment

The maximium cost I would be willing to purchase the asset is 26.033,84‬ above this price the investment will not yield the 6% return.

Explanation:

We calcualte the present value of all cash flows:

annual cashflow:

15,000 revenue - 2,000 expenses = 3,000

C3,000.00

time20

rate0.06

PV$34,409.7637

Pv of the 10th year investment:

Maturity  $15,000.0000

time  10.00

rate  0.06000

PV   8,375.9217

present value of the cashflow

34,409.7637 - 8,375.92 = 26.033,84‬

i think the answer to your question is b. directive

ell really, the setting was in franklin and lincoln visits franklin even after he moved to columbus, and he went to school