A Lawn Maintenance Company Compares Two Ride-On Mowers - the Excelsior

question 81

Multiple Choice

A lawn maintenance company compares two ride-on mowers - the Excelsior, which has an expected working-life of six years, and the Grassassinator, which has a working life of four years. After examining the equivalent annual annuities of each mower, the company decides to purchase the Excelsior. Which of the following, if true, would be most likely to make them change that decision?

• A)The prices of equivalent mowers are expected to grow in the future as lawnmower manufacturers consolidate.
• B)Fuel prices are expected to rise and raise the annual running costs of all mowers.
• C)The mower is only expected to be needed for three years.
• D)The number of customers requiring lawn-mowing services is expected to sharply increase in the near future.

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Definitions:

Personally Bound

Being legally obligated on an individual basis, usually in terms of contractual or financial responsibilities.

Contract

A contract among two or more entities that holds legal enforceability.

Authority

The right or power assigned to an entity or individual to govern, make decisions, or enforce obedience.

Revocation

The official cancellation or annulment of a decree, decision, or promise, typically within legal contexts such as wills, contracts, or licenses.