question archive Adrian tractor manufacturer signs a long term contract with a farm consortium to provide a new tractor every 3 years
Adrian tractor manufacturer signs a long term contract with a farm consortium to provide a new tractor every 3 years
Subject:EconomicsPrice: Bought3
Adrian tractor manufacturer signs a long term contract with a farm consortium to provide a new tractor every 3 years. If the cost of each tractor is ?24,050, determine the capitalized cost of the contract? Assume an interest rate of 8% over the life of the contract.
