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:

Information

Data or facts received or given which are processed or utilized to inform or make decisions.

Action

The process or state of doing something or being active, often implying movement or the implementation of decisions.

Recommendation

A suggestion or advice designed to guide decisions or actions.

Deadline

A fixed or final time by which something must be completed or submitted.