Jenkins Security Has Learned That a Rival Has Offered to Supply

question 62

Multiple Choice

Jenkins Security has learned that a rival has offered to supply a parking garage with security for ten years for $45,000 up front and a further $15,000 per year. If Jenkins Security offers to provide security for eight years for an upfront cost of $60,000 and a separate yearly payment, by what maximum amount can this yearly payment be over $20,000, so that Jenkins' offer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 5%.)

• A) -$89
• B) -$94
• C) -$100
• D) -$111

---

Definitions:

Street Gang

An organized group of individuals often involved in criminal activities and identified by their control of a particular territory, use of particular symbols, and loyalty to the group.

Sudhir Venkatesh

An American sociologist known for his detailed research and work in urban neighborhoods, highlighting issues of poverty, crime, and gang life.

Familism

A social structure where the needs of the family as a group are more important and prioritized over the needs of any individual family members.

Double Standard

A double standard refers to the application of different sets of principles for similar situations, or to different people, often leading to unfair or prejudicial treatment.