User Account

All Pages

Calculate the costs of buying and of leasing a motor vehicle

Assignment Help Corporate Finance
Reference no: EM13195645

1. Tammy Monahan is considering the purchase of a home entertainment center. The product attributes and weights she plans to consider are:

portability             .1

sound projection   .6

warranty               .3

Tammy rated the brands as follows:

 

portability

sound projection

warranty

Brand A

6

8

7

Brand B

9

6

8

Brand C

5

9

6

Using the Consumer Buying Matrix presented in Chapter 8, conduct a quantitative product evaluation rating for each brand. What other factors is Tammy likely to consider when making her purchase?

 2.   Based on the following, calculate the costs of buying and of leasing a motor vehicle.

Purchase Costs

                Leasing Costs

Down payment                 $1,500

Security deposit                 $500

Loan payment        $450 for 48 months

Lease payment       $450 for 36 months

Estimated value at

End of loan                      $4,000

End of lease charges         $600

Opportunity cost interest rate: 4 percent

3. You can purchase a service contract for all of your major appliances for $180 a year. If the appliances are expected to last for 10 years, and you earn 5 percent on your savings, what would be the future value of the amount you would pay for the service contract?     

4. You estimate that you can save $3,800 by selling your own home rather than using a real estate agent. What would be the future value of that amount if invested for five years at 7 percent?

5. John Walters is comparing the cost of credit to the cash price of an item. If John makes a $60 down payment, and pays $34 a month for 24 months, how much more would that be than the cash price of $695?

Reference no: EM13195645

Questions Cloud

State what is the chemical oxygen demand of the sample : ichromate solution is 0.0189 M dichromate, and it took 26.01 mL of your standard iron solution to titrate the excess dichromate in an unknown. What is the chemical oxygen demand of the sample, in units of mg O2/L?
Compute the concentration of an aqeuous solution : 2) Calculate the concentration of an aqeuous solution of Ca(OH)2 pH of 12.05.
Explain the process used to choose the correct buffer : What would you use to prepare a buffer system with a pH of around 4.2. What would you use to make a buffer with a pH of around 9.2? Describe the process you used to choose the correct buffer for each pH.
Describe the pattern and the type of risk that may apply : A company has a bond issue outstanding that pays $150 annual interest plus $1000 at maturity. The bond has a maturity of 10 years. Compute the value of the bond when the interest rate is 5%, 9%, and 13%. Describe the pattern and the type of risk t..
Calculate the costs of buying and of leasing a motor vehicle : Estimate that you can save $3,800 by selling your own home rather than using a real estate agent. What would be the future value of that amount if invested for five years at 7 percent?
Explain treatment of ortho-xylene : treatment of ortho-xylene with CH3COCl and AlCl3 followed by hydrolysis gives virtually a single product(one isomer). Treatment of this product with NaOCl in base followed by acidification gives a crystalline solid. Write equations for these react..
State reactions in which a substance decomposes by losing co : Reactions in which a substance decomposes by losing CO. calculate the minimum temperature at which the process would become spontaneous assumming delta H
State the desired pressure in the cylinder : What volume of gas should you collect at 25 degree celsius and 1.00 atm in order to achieve the desired pressure in the cylinder?
Evaluate the variance and standard deviation : Calculate the variance and standard deviation of the returns on a portfolio that has equal investments in two shares, three shares, and so on, up to 10 shares.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Finding additional financing

ICU has current assets of $800,000 and net fixed assets of $1,400,000. The company expects its sales to climb 25% next year from its current level of $3,500,000.

  Sophisticated valuation procedures

A standard criticism of investment banking company is their method to valuation which includes estimating a value for an offering and then manipulating input variables into conventional valuation techniques to justify the arrived value.

  Multiple questions on accounting principles

Multiple questions on accounting principles - Carter Cleaning completed the following transactions: Purchased $18,000 of Office Supplies for $8,000 cash and the remainder on credit. Purchased equipment for $7,950 on credit. As a result of these tr..

  Find which product makes the largest contribution

Mega Chemical Corporations manufactures Zylex A and a related product called Zylex B. Zylex B, which treade for $15.00 per gallon, is created from a base of Zylex A plus additional ingredients.

  What is the strategic net present value

What is the strategic net present value of this project if the cost of capital is 5% - Suppose that a project costs $1 million for each of the first five years. At the end of the fifth year,

  How many ties and scarfs should the firm

Computation of quantity to obtain required profit per process - How many ties and scarfs should the firm make to maximize its profit if they obtain $3?

  Calculate the standard deviation of portfolio

You are considering forming a portfolio with two securities, the details of which are as follows:

  Check whether a call option is priced correctly

Use the Black-Scholes option pricing formula to check whether a call option is priced correctly.

  Find what is the stock price

What is the market value of the debt and what is the market value of the firm also find what is the stock price?

  Explain using capital budgeting and capital structure

Suppose you work for local hospital you and your colleagues require deciding on whether to purchase new machine for the clinic.

  Explain the type of research design

As we have recently experienced, the instability in the price of gasoline has created sudden increases in values. Mostly these rises are from changes in supply, but can the gas firms pass all the increases along to consumer?

  Explain the current reforms, their strength and weaknesses

You have been asked to write an article for The Economist analysing the debate initiated by Robert Shiller about democratising finance & comparing this with the kinds of regulatory measures

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd