Because of Its Age, Your Car Costs $4,000 Annually in Maintenance

question 112

Multiple Choice

Because of its age, your car costs $4,000 annually in maintenance expense.You could replace it with a newer vehicle costing $8,000.Both vehicles would be expected to last four more years.If your opportunity cost is 8 percent, by how much must maintenance expense decrease on the newer vehicle to justify its purchase?

• A)$1,250
• B)$1,585
• C)$2,000
• D)$2,415 8,000 = Annuity

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Definitions:

Extraversion

A personality trait characterized by outgoing, sociable, and energetic behaviors.

Absenteeism

The habitual non-presence of an employee at their job.

Trait Activation Theory

Suggests that certain situations or environments can trigger the expression of specific traits, influencing individuals' behavior.

Managerial Assignments

Tasks or projects assigned to managers or those in leadership positions, involving decision-making, planning, and oversight of resources.