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Previous Page Next Page Page 2 of 8 Question 2 (1 point) A young professional offers to buy your car with four, equal annual payments
Previous Page Next Page Page 2 of 8 Question 2 (1 point) A young professional offers to buy your car with four, equal annual payments of $3,000. Assuming you're indifferent to cash versus credit, that you can invest at 10% return, and that your reservation price is $9000 (reservation price is the minimum price you must receive for the car), should you accept? No; present value of the offer is the same as the reservation price. Yes; present value of the offer exceeds the reservation price No, present value of the offer is below the reservation price. Yes; the total amount of payments of the offer exceeds the reservation price
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