Question
1-The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to: A. $26,380 B.
1-The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to:
A. $26,380
B. $16,380
C. $32,590
D. $13,520
2-A company must install antipollution equipment in a new refinery to meet Saudi clean-air standards. Four design alternatives are being considered, which will have capital investment and annual operating expenses as shown below. Determine which design should be selected on the basis of the FW method
A. (D1=$9,860,681 D2=$9,990,967)
B. (D1=$9,862,681 D2=$9,993,967)
C.(D1=$9,962,681 D2=$9,093,967)
3-You have decided to purchase a new car; the purchase price is $30,000. This balance can be financed by an auto dealer at 2.9% APR with payments over 48 months. Alternatively, you can get a $ 2000 discount on the purchase price if you finance the loan balance at an APR of 8.9% over 48 months. Should you accept the 2.9% financing plan or accept the dealer's offer of a $2,000 rebate with 8.9% financing? Both APRs are compounded monthly. Your goal is minimizing your monthly payment.
A. I will choose 8.9%with discount
B.I will choose the 2.9%without discount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started