You Are Looking for a Car and Have Narrowed Your

question 110

Multiple Choice

You are looking for a car and have narrowed your choice down to two options.You can buy a new car at a cost of $23,995,which has an estimated life of 12 years and annual maintenance costs of $750 per year.Your second option is a used car at a cost of $14,225,with an estimated remaining life of 7 years and annual maintenance costs of $1,800 per year.Which is the cheaper option,given your borrowing cost of 7%?

• A)The new car,since its costs have a lower PV
• B)The used car,since its costs have a lower PV
• C)The new car,since it has a lower equivalent annual annuity.
• D)The used car,since it has a lower equivalent annual annuity.
• E)The used car,since it has a higher equivalent annual annuity.

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Definitions:

Strokes

Medical conditions that occur when the blood supply to part of the brain is interrupted or reduced, leading to brain damage and potential loss of functions.

Brain Diseases

Conditions that impair normal brain function, including neurodegenerative diseases such as Alzheimer's and Parkinson's.

Memory

The persistence of learning over time through the storage and retrieval of information.

Behavior Genetics Perspective

A field of study focused on understanding how genetic and environmental variables contribute to variations in behavior.