The Owner of a Car Complains That the Gears Grind

question 2

Multiple Choice

The owner of a car complains that the gears grind when shifting into reverse. Technician A says the clutch has excessive freeplay. Technician B says there could be oil on the clutch disk facing. Who is correct?

• A)A only
• B)B only
• C)both A and B
• D)neither A nor B

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows, considering a certain interest rate.

Semiannually

Semiannually means occurring twice a year, typically at six-month intervals.

Discounted

A financial term referring to an instrument, transaction, or cash flow that is valued in present terms, taking into account the time value of money.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the evaluation of investment opportunities.