Use the Information for the Question(s) Below

question 20

Multiple Choice

Use the information for the question(s) below.
Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck for an upfront cost of $200,000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4000 (paid at the end of each month) . Your firm can borrow at 6% APR with quarterly compounding.
-The monthly discount rate that you should use to evaluate the truck lease is closest to:

• A) 0.487%
• B) 0.498%
• C) 1.500%
• D) 1.535%

---

Definitions:

Incivility

Discourteous communication and rude behavior that are disrespectful, hurtful, or injurious.

Consequences

Consequences refer to the results or outcomes that naturally follow from an action, behavior, or decision.

Barriers

Obstacles that impede progress, communication, or achievement, which can be physical, psychological, or systemic in nature.

Communication

The act of transferring information from one place, person, or group to another.