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:

Evolutionary Developmental Psychologists

Psychologists who study the developmental processes leading to behavioral adaptability and change, integrating principles of evolutionary psychology with developmental psychology.

Extended Childhood Period

a developmental phase in humans lasting from birth to the onset of puberty, characterized by slow growth and extensive learning.

Natural Selection

The process by which biological traits become more or less common in a population due to consistent effects upon the survival or reproduction of their bearers.

Gradual Modification

denotes the process of slow and incremental changes or adjustments, often used in the context of evolutionary biology or behavior modification strategies.