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Your client needs a new car and is trying to decide whether to (1) buy and pay cash, (2) buy fully financed, or (3) lease. The following terms are available:If the car is purchased for cash:Cost new, $24,000Factory rebate available immediately, $2,000If car is purchased fully financed:Cost new, $24,000No down payment100 percent financing by dealer at in = 6 percent, 36 monthly paymentsIf the same car is leased:Monthly lease fee paid in advance at BOM (beginning of the month), $450 per month (the first payment is due now).At the end of the 60-month lease period the client has an option to purchase the car for $1.00.The client ordinarily invests and borrows at in = 12 percent compounded monthly, and expects to keep the car for 60 months.
a) Find the equivalent monthly cost over the life of the car of each of the three alternatives and select the lowest cost. (Disregard resale value at EOM 60, since it is the same in all three cases)
b) The dealer offers an additional bonus feature with the fully financed purchase offer where by the first payment is not due until EOM 4. Delivery of the car is made now, and interest at 6 percent accrues on the balance owed. The 36 monthly payments are calculated on the amount owed at EOM 3. Find the equivalent monthly cost over the life of the car of acquiring the car under this alternative.
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(11%) This printer will be fully depreciated by the straight-line method over its 7-year economic life, and will be sold for$60,000 at the termination of the 5-year project. The variable costs are $26 per copy, and annual fixed costs are $80,000. ..
you will need to review the activity resources and then research credit risk so you will better understand the benefits
the adam limousine company wants to purchase a car entertainment system for one of its automobiles. the entertainment
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A woodworker is concerned about the quality of the finished appearance of her work. In sampling units of a split-willow hand-woven basket, she has found the following number of finish defects in ten units sampled: 4, 0, 3, 1, 2, 0, 1, 2, 0, 2.
Select a new product or service that will be launched by either an existing organization or one you will create. This product or service will serve as the basis for the Marketing Plan you will write throughout the course.
an imposed budget forecast approach does not allow input from those who are directly affected by the process. this can
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