What is the present value of the car payments

Assignment Help Financial Management
Reference no: EM13721618

The car dealership offers you no money down on a new car. You may pay for the car in 6 equal annual end-of-the year payments of $7,648 each with the first payments to be made one year from today. If the discount rate is 8.91 percent compounded annually what is the present value of the car payments? Round to 2 decimals

Reference no: EM13721618

Questions Cloud

Not-for-profit acute care facility : General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:
Setting the price on new outpatient service : Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service.  What per visit price must be set for the service to break even? To earn an annual profit of $100,000? Repeat Part a, but assume that the variable co..
The importance of adhering to a convention : A research paper. You will need to have an abstract and a reference page. The importance of adhering to a convention such as APA format when writing and researching. What do you like about it? What would you change about APA if you could? Why? ..
Explain restrictions placed on state and local government : Explain the restrictions placed on state and local government debt in your state. Provide examples to support your answer.
What is the present value of the car payments : The car dealership offers you no money down on a new car. You may pay for the car in 6 equal annual end-of-the year payments of $7,648 each with the first payments to be made one year from today. If the discount rate is 8.91 percent compounded annual..
What is the exchange rate between the rupee and pound : Assume the exchange rate between US dollar and Indian Rupee is 60 Rupees = $1, and exchange rate between dollar and British pound is 1 Pound = $1.50. What is the exchange rate between the Rupee and pound?
Compare the two cases of owning the stock versus : We buy a put option of Stefanic and associates. Its premium is $1 and the strike price is $34. The current market price is $40. If the price drops to $20, shall we exercise the put option? If not, why not , and If yes, why yes? Compare the two cases ..
Compute the book value-liquidation value-replacement value : We know the following about Radice. Total assets are $120m, D is $40m, E is $60m, preferred stock of $20m, cash is $10m and the # of shares is 1m. We estimate that the market value of equity is 3 times the book value of it. Finally, a fire sale of th..
Best estimate of teh remaining life left for eades corp : Eades has 9% annual coupon bonds that are callable and have 18years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,220.35. However, Eades may call the bonds in eight years at a call price of $1,060. Wh..

Reviews

Write a Review

 

Financial Management Questions & Answers

  As explained in the description of the assignment please

as explained in the description of the assignment please use the data provided in exhibit 2 and 3 of the textbook as

  Find an article about a company reporting key financial news

Search current news (less than 6 months old) and find an article about a company reporting key financial news (e.g. landing a large contract, reporting unusual profits or losses, expressing concern for future profitability, etc.). Briefly review the ..

  Assignment you are interested in proposing a new venture to

assignment you are interested in proposing a new venture to the management of your company. pertinent financial

  1calculate the after-tax cost of debt under each of the

1.calculate the after-tax cost of debt under each of the following conditionsa.interest rate 8 percent tax rate 0

  1you are a bond investor and youre examining a callable

1.you are a bond investor and youre examining a callable bond. it can be called in 5 years. it is a semiannual bond.

  Calculate the cost of unlevered equity

Calculate the cost of unlevered equity if the cost of equity is 20%, the cost of debt is 7%, and the capital is 50% equity and 50% debt.

  What is the current price of the bond

What is the current price of the bond if the comparable rate of interest is 8 percent?

  Hsieh-hseih inc must choose between two copiers the zz20

1. hsieh-hseih inc. must choose between two copiers the zz20 or the gg50.the zz20 costs 300 and will last for three

  How firms estimate their cost of capital the wacc for a

1.how firms estimate their cost of capital the wacc for a firm is 13.00 percent. you know that the firmrsquos cost of

  Let ckdenote a european vanilla call option with strike

let ckdenote a european vanilla call option with strike price k. assume that all options are identical except for

  What is dengs wacc

Deng Inc. has a target debt-equity ratio of 0.4. It's before-tax  cost of equity is 16 %  and it's before-tax cost of debt is 8%. If the tax rate is 32%, what is Deng's WACC?

  Liquidity ratios edison stagg and thornton have the

liquidity ratios. edison stagg and thornton have the following financial information at the close of business on july

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