Use the Information for the Question(s) Below

question 35

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.
-Suppose that the bulldozer can be leased with a fixed price lease that allows the lessee to buy the asset at the end of the lease for $12,000. The lease payments will be closest to ________.

• A) 2,114
• B) 1,825
• C) 1,882
• D) 2,324

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Definitions:

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.

Astrocytes

Star-shaped glial cells in the brain and spinal cord, crucial for the repair and scarring process of the central nervous system.

Olfactory Bulbs

Structure located in the forebrain of vertebrates that processes information about odors detected by cells in the nasal cavity.

Hippocampus

The hippocampus is a major component of the human brain, involved in memory formation and spatial navigation.