Value of cheap credit. The auto firm is trying to increase its sales. Thus it has offered to sell you the car for $33,000 ($2,000 cash back) or charge you $35,000 and lend you $30,000 of the purchase price at 9%. Thus you will either make a $3000 down payment and make the five annual payments you solved for above (i. e. loan payments based on the 10% rate you can get from the bank) or a $5,000 down payment and make the annual payments based on a 9% (subsidized) rate. How much cheaper is the discounted financing option in a present value sense (including all payments)? If it is more expensive, enter your answer as a negative number. Assume that the correct discount rate is still 10% when you value the two loans. Hint: Create two columns for the two financing options containing the cash flows, i. e. the annual payments on the loan plus the down payments. Then calculate the present value of those payments and compare them.
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Business, 21.06.2019 22:50, nayelimoormann
The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300
Answers: 2
Business, 22.06.2019 13:50, chammusa2
Which one of the following statements is true? ddt does not prevent disease from passing from agricultural animals to humans. cost was a major factor in the united states government's decision to ban ddt. many african governments concluded that the potential long-term health effects of ddt were not as serious as the immediate problem of insect control. ddt cannot accumulate in the fat of animals. the ddt ban in the united states has made it very difficult to control agricultural insect pests.
Answers: 3
Business, 22.06.2019 16:00, heavenwagner
In microeconomics, the point at which supply and demand meet is called the blank price
Answers: 3
Value of cheap credit. The auto firm is trying to increase its sales. Thus it has offered to sell yo...
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