Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below.
Suppose the purchase price of a bulldozer is $90,000,its residual value in four years is certain to be $15,000,and there is no risk that the lessee will default on the lease.Assume that capital markets are perfect and the risk-free interest rate is 6% APR with monthly compounding.
-Suppose that instead of leasing the bulldozer,the company is considering purchasing a bulldozer outright by borrowing the purchase price using a four-year annuity loan.The monthly loan payments for a four-year loan to purchase the bulldozer are closest to:

• A)$2115.
• B)$1825.
• C)$1870.
• D)$1750.

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Definitions:

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture, often accompanied by a prejudiced outlook on others.

Contact

In psychology, it can refer to the act of interaction or communication between individuals or groups, which can influence perceptions and relationships.

Ethnocentrism

A belief or attitude that one's own culture or ethnicity is superior to others, often leading to judging other cultures by one's own cultural standards.

Racial Prejudice

Unjustifiable negative attitudes or beliefs towards individuals or groups based on their race.