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Question 10 5 pts A businessman wants to buy a truck. The dealer offers to sell the truck for either (i) $120,000 now, or (ii)
Question 10 5 pts A businessman wants to buy a truck. The dealer offers to sell the truck for either (i) $120,000 now, or (ii) five yearly payments of $30,000 at the end of each year. If the businessman does not have enough cash but can get a loan from the bank at 10% interest rate, which offer should he choose from the dealer? Option (i) because the dealer charges 7.93% Option (ii) because the dealer charges 10.11% Option (i) because the dealer charges 10.67% Option (ii) because the dealer charges 7.93% Option (ii) because the dealer charges 10.67%
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