Determine which has a higher roi

Assignment Help Financial Management
Reference no: EM13738998

Question: In both your professional and personal life, you will make a variety of decisions. You should consider the financial and nonfinancial aspects while making decisions.

To evaluate scenarios, you will also use some tools such as net present value (NPV) and return on investment (ROI) that you have discussed so far.

In this assignment, you will evaluate the financial aspects of making decisions.

Tasks:

Investigate any two of the financial decisions:

.Using net present value calculations, determine which has a higher ROI

Buying a Chevrolet Impala today for $30,000, putting $15,000 down and taking a six-year loan for the rest at 5%

or

Leasing the Impala for 4 years at $329 a month. Since $4000 is due when the lease is signed, the rate will equal to 5%.

Show your work and explain your rationale.

For the two options that you selected (and using the figures given above for those options), investigate the realistic assumptions for your location and include the information you found in the analysis. Create a one page paper. Including the following:

- Initial information/approach: purchase price, rebate, down payment, amount to finance, etc.

- Payments formulas and calculations

- Explanation of the financial factors that you are employing in the selected decisions

- Conclusion containing the "best answer" for your personal life on the basis of these financial factors

- Probability of following the recommended "best answer" (assuming that these are the only decision options)

Reference no: EM13738998

Questions Cloud

Explain health policy : Question 1: Explain health policy. What is it and how does it work? Question 2: According to Steinmo and Watts (in Harrington & Estes), Comprehensive National Health Insurance always fails in America; Discuss the authors' viewpoint. Do you agree w..
Discussion of different kinds of racism and prejudice : What similarities or dissimilarities do you detect? Be sure to include a discussion of different kinds of racism and/or prejudice.
Various types of organizational buyers and consumers : Research the various types of organizational buyers and consumers, and distinguish the factors that influence their purchasing decisions. What are the various types of organizational buyers and consumers
What advertising campaign did you choose and why : Your marketing team has asked you to prepare a report in which you distinguish the different types of statistical analysis and which one would work best in marketing BevCo's new beverage. What advertising campaign did you choose? Why
Determine which has a higher roi : You will make a variety of decisions. You should consider the financial and nonfinancial aspects while making decisions - evaluate scenarios, you will also use some tools such as net present value (NPV) and return on investment (ROI) that you have d..
What are the models of consumers in terms of economic view : What are the models of consumers in terms of an economic view, a passive view, a cognitive view, and an emotional view
Write an e-mail to employees : write an e-mail to employees. This message should provide information as well as ask employees to choose between continuing the current company-wide uniform floating holiday and instituting a new plan for an individual floating holiday. Be sure to..
Leading into the future project : The purpose of the ‘Leading Into the Future Project' is to get you actively engaged in integrating your learning in the course with your career - and community improvement. The project should provide you with great opportunities to get school cred..

Reviews

Write a Review

Financial Management Questions & Answers

  The value of a share

Emmy Lou, Inc. has an expected dividend next year of $3.60 per share, a growth rate of dividends of 8 percent, and a required return of 13 percent. The value of a share of Emmy Lou, Inc.'s common stock is ________.

  Calculate the present value of an assets cash flow

When you calculate the Present Value of an asset's cash flow,

  Financial analysis on sherwin williams company

Do a financial analysis on Sherwin Williams Company

  Any forecast of financial requirements involves determining

Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. The projected balance sheet method of f..

  What is the periodic current yield of the bond

You have the following bond: Par value = 10,000, Coupon is 12%, semi-annually compounded, 20 year maturity, Nominal Market rate of interest is 11.25%. What is the periodic current yield of the bond in Period 20 (20 periods to maturity?)

  Write a 750- to 1050-word paper in which you describe a

write a 750- to 1050-word paper in which you describe a project you have managed personally or professionally. examples

  Pension plan is obligated to make disbursements

A pension plan is obligated to make disbursements of $1.7 million, $2.7 million, and $1.7 million at the end of each of the next three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how..

  What is the companys stock price per share today

Troy Tec Inc. is expected to produce $100 million FCF (free cash flow) at the end of year 3, $150 million FCF at the end of year 4, $180 million at the end of year 5 and thereafter the FCF is expected to grow at a constant rate of 4%. No FCFs ($0) ar..

  What is the net advantage to leasing

Delamont Transport Company (DTC) is evaluating the merits of leasing versus purchasing a truck with a 4-year life that costs $50,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 9%, and the loa..

  After tax cash flow from the sale of this asset

Consider an asset that costs $369,600 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $46,200. If the relevant tax rate is 32 percent..

  Year-end the yield curve will be flat

One-year bonds yield 7%, two-year bonds yield 8%, three-year bonds and greater maturity bonds all yield 9%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 8%, once a year. Which bond should you buy if ..

  Assume the market is in equilibrium with the required return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.75 coming 3 years from today. The div..

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!

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