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Use the information for the question(s) below.
Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck for an upfront cost of $250 000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $5 000 (paid at the end of each month) . Your firm can borrow at 5% APR with quarterly compounding.
-The monthly discount rate that you should use to evaluate the truck lease is closest to:
Interstate Commerce Clause
A provision in the U.S. Constitution that gives Congress the power to regulate commerce between states.
Sherman Act
An important United States antitrust law enacted in 1890 to prohibit monopolies and practices that restrain trade or commerce among states.
Congress
The national legislative body of the United States, made up of the House of Representatives and the Senate.
Conglomerate Business
A large corporation formed by the merging of separate and diverse firms, involved in unrelated business activities.
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