Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) John decides to purchase a car. He can either lease car or buy it with a three year loan. The car he wants to purchase costs= $45,000. Dealer has a special leasing arrangement where he pays $1 today and $650 per month for next 3 years. If he buys the car, he will pay it off in monthly payments over next 3 years at the 10% annual percentage interest rate (APR). He also believes that he will be able to sell car for= $30,000 in 3 years.
What is the present value of total costs if Jack decides to lease car?

i) $20142.30
ii) $20143.30
iii) $20144.30
iv) $20312.17
v) $20313.17
vi) $20314.17

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915354

Have any Question? 


Related Questions in Basic Finance

If brads stocks double in value over the next five years

If Brad's stocks double in value over the next five years, what annual return would he realize? (Hint: Use the future value table in Appendix C.) Based on his projected annualized return, would it be advisable to sell th ...

Stock a has a beta of 15 and stock b has a beta of 10

Stock A has a beta of 1.5, and Stock B has a beta of 1.0. Determine whether each statement below is true or false. a. Stock A must have a higher standard deviation than Stock B. b. Stock A has a higher expected return th ...

In the presence process arsine and trimethylgallium vapors

In the presence process, arsine and trimethylgallium vapors are diluted in hydrogen gas and fed to the horizontal CVD reactor shown in Figure 30.2. The composition of arsine and trimethylgallium in the feed gas are both ...

1 how has the mne evolved how have the changes in mnes

1. How has the MNE evolved? How have the changes in MNEs affected HR? 2. What are the various choices that MNEs have for entry into IB? How do the functions of HR vary with these various choices? 3. How can IHR help to e ...

A neutron causes 83211bi to change according to the

A neutron causes 83 211 Bi to change according to the following reaction: 0 1 n + 83 211 Bi → Z A X + γ The Z A X nucleus subsequently undergoes β - decay, and its daughter does too. What is the atomic number of the fina ...

Distinguish between the types of financial information

Distinguish between the types of financial information contained in the various financial statements. Which statements provide information on a company's performance over a reporting period, and which present data on a c ...

Phillips rock and mud is trying to determine the maximum

Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows: Assets Cash $ 386,000 Accounts receivable 836,000 Fixed assets   1,048,000   ...

Suppose that lilymac photography has annual sales of 222000

Suppose that LilyMac Photography has annual sales of $222,000, cost of goods sold of $157,000, average inventories of $6,300, average accounts receivable of $28,600, and an average accounts payable balance of $19,000. As ...

As a percentage of yield whats the minimum and maximum

As a percentage of yield what's the minimum and maximum tensile stress to be seen by a production quantity of these bolts? With the estimated minimum in-service tensile stress in mind, what possible bolt or joint failure ...

A substantial part of prestige cars ltds sales are to north

A substantial part of Prestige Cars Ltd's sales are to North America where it operates through a wholly owned subsidiary. Its principal competitors are German. It has been reported widely that Prestige Cars Ltd hedges it ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro