A Security Company Offers to Provide CCTV Coverage for a Parking

question 56

Multiple Choice

A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $50,000 and additional payments of $20,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 6%?

• A) -$20,000
• B) -$14,720
• C) -$19,720
• D) -$26,793

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Definitions:

Proposals

Documents offering a plan or suggestion, put forward for consideration or discussion by others.

Description

The act of providing detailed information about characteristics, features, or aspects of something.

Writer

An individual who expresses thoughts, stories, or information through the act of writing, ranging from professional authors to casual communicators.

Concise

Expressing or covering much in few words; brief in form but comprehensive in scope.