car B -20000 car A first cost annual operating cost salvage life, years -32000 -4000 4000 You must decide between two different cars. Using an interest rate of 8% per year, the PV of car A is closest to -3500 1000 3 6 $-121396 .A O $-101396 .B O $-111396.C O $-112396.D O

car B -20000 car A first cost annual operating cost salvage life, years -32000 -4000 4000 You must decide between two different cars. Using an interest rate of 8% per year, the PV of car A is closest to -3500 1000 3 6 $-121396 .A O $-101396 .B O $-111396.C O $-112396.D O

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

car A
-32000
car B
first cost
lannual operating cost
salvage
life, years
-20000
You must decide between two different cars. Using an interest rate of 8% per year, the PV of car A is closest to
-4000
-3500
4000
1000
3
6
$-121396 .A O
$-101396 .B O
$-111396.C O
$-112396.D O

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