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Luxury Fleet Operates a Fleet of Limousines

Question 28

Multiple Choice

Luxury Fleet operates a fleet of limousines.It is currently considering replacing them with a new model.It plans to evaluate options based on the following information: Luxury Fleet operates a fleet of limousines.It is currently considering replacing them with a new model.It plans to evaluate options based on the following information:   Which of the four following options should management choose? A) Replace the old limousines now with the standard limousines and operate for seven years,replaced in perpetuity. B) Replace the old limousines in three years' time with the standard limousines and operate for seven years,replaced in perpetuity. C) Replace the old limousines in three years' time with the deluxe limousines and operate for nine years,replaced in perpetuity. D) Replace the old limousines now with the deluxe limousines and operate for nine years,replaced in perpetuity.
Which of the four following options should management choose?


A) Replace the old limousines now with the standard limousines and operate for seven years,replaced in perpetuity.
B) Replace the old limousines in three years' time with the standard limousines and operate for seven years,replaced in perpetuity.
C) Replace the old limousines in three years' time with the deluxe limousines and operate for nine years,replaced in perpetuity.
D) Replace the old limousines now with the deluxe limousines and operate for nine years,replaced in perpetuity.

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