1-Vendor 1 offers a discount of 2% if payment is made within 10 days. If the discount is not taken, full payment is due in 30 days. The Monthly purchases amounted from this supplier 18999$ . What is the annual cost of not accepting the 2% discount? (APR1 =?)

2- A company needs to increase its working capital to 18999$ , the Chief Financial Officer (CFO) decide to issue a commercial paper at a discount interest rate of 6 %. Note that the sale of this papers costing the company $2,000 / 6 months.

a- Find the Face Value of Commercial Papers to collect 18999$. FV1 = ?

b- Find the effective interest rate of this type of financing. EIR1= ?

3- A company needs to increase its working capital to 18999$, the Chief Financial Officer (CFO) decide to Get a 1-year short-term loan from the bank at an interest rate of 8%, note that is required to keep 20 % as a compensating balance.

a- Find the Face Value of Commercial Papers to collect 18999$. FV2 = ?

b- Find the effective interest rate of this type of financing. EIR2 = ?

4- The company Arab Equipment leasing want to buy equipment for18999$, and then to lease to other companies. The estimated economic life of the equipment is 7 years, and can to be sold at the end of the period for X/1000 $ (salvage Value). The company follows the policy of straight-line depreciation expense and require a return on investment after tax of 25%. The company pays income tax at a rate of 15%. The company is committed to providing maintenance services for all equipment leased. Maintenance cost is estimated 1500 SAR per year.

a- Find the Rate of Return R = ?

b- Find the tax rate = ?

c- Find the sum of the discount factors = 1 (1+) 7 =1

d- Find the salvage value SV = ?

e- Find the cost of investment CI = ?

f- Find the depreciation D =?

g- Find the discounted salvage value DSV=?

h- Find the maintenance cost M = ?

i- Calculate the lease payment from the viewpoint of the Lessor. L = ?