Solved

A Businessman Is Considering How Many Limousines to Purchase When

Question 82

Multiple Choice

A businessman is considering how many limousines to purchase when he starts up a limousine service.Below are his estimates of the number of limousine rentals the service will make during a year,depending on the number of limousines available. A businessman is considering how many limousines to purchase when he starts up a limousine service.Below are his estimates of the number of limousine rentals the service will make during a year,depending on the number of limousines available.   After paying all non-interest expenses,the owner expects to net $10 per rental.Each limousine costs $50,000.How many limousines should he purchase if the real interest rate is 4.5%? A)  0. B)  1. C)  2. D)  3. E)  4.
After paying all non-interest expenses,the owner expects to net $10 per rental.Each limousine costs $50,000.How many limousines should he purchase if the real interest rate is 4.5%?


A) 0.
B) 1.
C) 2.
D) 3.
E) 4.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions