What is the difference in the eac of the two cars

Assignment Help Accounting Basics
Reference no: EM132460413

You are trying to pick the least expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $13,000 to purchase and which will have OCF of -$1,200 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $23,000 to purchase and which will have OCF of -$550 annually throughout that vehicle's expected five-year life. Both cars will be worthless at the end of their life.

Question 1: If you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future, and if your business has a cost of capital of 16 percent, what is the difference in the EAC of the two cars

Reference no: EM132460413

Questions Cloud

What amount should cle include as a foreign exchange gain : What amount should Set include as a foreign currency transaction gain or loss?what amount should Cle include as a foreign exchange gain or loss?
Explain your selection of teaching materials : Explain your selection of teaching materials. How do they cater to or possibly impede the audience's receptivity to the shared health education information?
How are you contributing to nursing history : You have completed your interview of a nurse who is making nursing history today. How will that nurse's contributions and accomplishments impact your future.
ENGL-1302 Composition and Rhetoric Assignment : ENGL-1302 Composition and Rhetoric Assignment Help and Solution, Lone Star College - Homework Help - write a formalist analysis of the Robert Frost poem.
What is the difference in the eac of the two cars : What is the difference in the EAC of the two cars,out into the foreseeable future, and if your business has a cost of capital of 16 percent
Would you describe yourself as a lifelong learner : Think way back to your Personal Philosophy of Nursing paper that you wrote in the very first RN BSN nursing course N3345 Transition to Professional Nursing.
Prepare the general journal entry to close net income : Prepare the general journal entry (without explanation) needed to close Net Income or Net Loss for the year end. Use compound entries where required
Identify gender-specific childhood clothing and toys : Examine how theory and sociological concepts apply to everyday life. Identify gender-specific childhood clothing and/or toys. Explain the basic tools of.
Would you advise blue sky to replace the older machine : Blue Sky's tax rate is 40 percent, and its cost of capital is 15 percent. Would you advise Blue Sky to replace the older machine?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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