Jenkins Security Has Learned That a Rival Has Offered to Supply

question 40

Multiple Choice

Jenkins Security has learned that a rival has offered to supply a parking garage with security for ten years for $50,000 up front and a further $20,000 per year.If Jenkins Security offers to provide security for eight years for an upfront cost of $70,000 and a separate yearly payment,what is the maximum that this yearly payment can be so that Jenkins' offer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 6%. )

• A)$13,095
• B)$13,458
• C)$13,995
• D)$15,521

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Definitions:

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A barrier made from wire, used to enclose or divide an area, typically for security or to keep livestock within a boundary.

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Being legally responsible for something.

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A confectionary item made primarily from chocolate and shaped into a rectangular form for consumption.