Jane Has an Old Car That She Expects Will Last

question 20

Multiple Choice

Jane has an old car that she expects will last for only two more years. She says she derives $900 worth of services from the car each year. She expects the scrap value of the car to be so low that it is not worth considering. If the interest rate is 6 percent, it is not likely that she will sell the car unless she is paid more than

• A)$1,650.
• B)$1,800.
• C)$1,562.
• D)$1,723.
• E)$1,697.

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A business philosophy suggesting that success is achieved by focusing on the needs and wants of target markets and delivering value better than competitors.