Your Firm Intends to Finance the Purchase of a New

question 39

Multiple Choice

Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. How large is the payment at the end of year ten if the crane is financed at a rate of 8.50% as a discount loan?

• A) $228,611.56
• B) $127,500
• C) $3,391,475.16
• D) There is not enough information to answer this question.

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Definitions:

Cognitive-dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Self-evaluation Maintenance Model

A psychological theory explaining how people's relationships with others influence their self-esteem and motivation.

Self-images

The mental picture one has of oneself, which can influence behavior, confidence, and self-esteem.

Sincere Performance

is the authentic and genuine display of emotions and actions without pretense or deception.