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

question 87

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 4 more years.If your opportunity cost is 8%,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

---

Definitions:

Ordeal

An ordeal is a severe, challenging experience or trial that tests the strength, endurance, or character of an individual.

Symptomatic Behavior

Actions or expressions that are manifestations of an underlying problem, condition, or disorder.

Structural Therapy

A type of family therapy that focuses on adjusting and strengthening the family system to ensure that appropriate hierarchies and boundaries are maintained.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and learning.