A lawn maintenance company compares two ride-on mowers-the Excelsior,which has an expected working-life of six years,and the Grassassinator,which has a working life of four years.After examining the equivalent annual annuities of each mower,the company decides to purchase the Excelsior.Which of the following,if true,would be most likely to make them change that decision?

Question

Quizplus · Accepted Answer

The decision to purchase the Excelsior was based on the equivalent annual annuities of both mowers, taking into account their expected working life. If the mower is only expected to be needed for three years, then the Grassassinator may become the more cost-effective choice if its equivalent annual annuity is lower for that time period. Therefore, option B is the most likely to make the company change their decision. The other options are either irrelevant to the decision or do not provide a clear reason to reverse it.

A Lawn Maintenance Company Compares Two Ride-On Mowers-The Excelsior,which Has