Multiple Choice
Happy Trails,a bicycle rental company,is considering purchasing three additional bicycles.Each bicycle would cost them $249.66.At the end of the first year the increase to their revenues would be $140 per bicycle.At the end of the second year the increase to their revenues would be $115 per bicycle and they can sell each used bike for another $25.At which of the following interest rates is the sum of the present value of the revenues from buying a bicycle closest to the price of a bicycle?
A) 5 percent
B) 6 percent
C) 7 percent
D) 8 percent
Correct Answer:
Verified
Correct Answer:
Verified
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