At the most basic level, a bond is Multiple Choice a financial arrangement that involves the transfer of funds to a government or business entity. a financial arrangement that involves the current transfer of resources from a lender to a borrower, with a transfer back at some time in the future. a loan that involves that a contract. the transfer of funds from a lender to a borrower.

You are considering the purchase of one of two machines used in your manufacturing plant. machine 1 has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. machine 2 costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. either machine must be replaced at the end of its life with an equivalent machine. using eac which is the better machine for the firm