Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 4 years? Year MACRS Rate 1 20.0 % 2 32.0 % 19.2 % 4 11.52 % 11.52 % book value = [ ?] Round to the nearest hundredth.

Q: the right answer is 4.0305 or 403%. Can you clarify

A:

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.