Use the Information for the Question(s)below

question 40

Multiple Choice

Use the information for the question(s) below.
Suppose the purchase price of a bulldozer is $90,000,its residual value in four years is certain to be $15,000,and there is no risk that the lessee will default on the lease.Assume that capital markets are perfect and the risk-free interest rate is 6% APR with monthly compounding.
-The monthly lease payments for a four-year lease of the bulldozer are closest to:

• A)$1870.
• B)$1825.
• C)$1750.
• D)$2115.

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Vice President

An officer in a government or business organization ranking below a president or chief executive officer.

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The highest-ranking executive in a company, responsible for major corporate decisions, overall operations, and resource management.

Controller

A corporate officer responsible for overseeing and managing the financial reporting, accounting, and auditing of a company.

Treasurer

An officer of a company or organization responsible for overseeing the management and regulation of its financial affairs.