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After getting her degree in marketing and working for 5 years for a large department store, Sally started her own specialty shop in a regional mall. Sally's current lease calls for payments of $1,000 at the end of each month for the next 60 months. Now the landlord offers Sally a new 5-year lease which calls for zero rent for
6 months, then rental payments of $1,050 at the end of each month for the next 54 months. Sally's cost of capital is 11 percent. By what absolute dollar amount would accepting the new lease change Sally's theoretical net worth?
A. $3,243.24
B. $2,810.09
C. $4,681.76
D. $4,299.87
E. $3,803.06
Answer: E
Explanation:
Explanation/Reference:
Explanation:
CF(0) = 0
CF(1-6) = 0
CF(7-60) = 1,050
I = 11/12 = 0.9167
Solve for NPV = -$42,189.97. Therefore, the PV of payments under the proposed lease would be less than the PV of payments under the old lease by $45,993.03 - $42,189.97 = $3,803.06. Sally should accept the new lease because it would raise her theoretical net worth by $3,803.06.

NEW QUESTION: 2
A P8 administrator receives an error during the deployment of Workplace XT on an IBM WebSphere Application Server (WAS). Which log should be reviewed first?
A. SystemOut.log
B. p8_server_trace.log
C. p8_api_error.log
D. p8_server_error.log
Answer: A

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DRAG DROP
You write the following code.

You need to get the list of all the types defined in the assembly that is being executed currently.
How should you complete the code? To answer, drag the appropriate code elements to the correct targets in the answer area. Each code element may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.

Answer:
Explanation:



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