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5. Assume that you are the finance officer for an equipment dealer. The owner has asked you to determine the markup needed for the following

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5. Assume that you are the finance officer for an equipment dealer. The owner has asked you to determine the markup needed for the following financing packages. Assume that you need to net (today) $650,000 on a particular machine for the dealership to break even and that market interest rates are 6% AR. All payment plans are to involve monthly payments. You will advertise a common "list price" with a separate "rebate amount" for each financing alternative. Your marketing department want to have a rebate amount of at least $5,000 for all financing options. Find the minimal common list price and associated rebate amounts that provides your company a present value (or "net") of \$650,000 for each financing plan. a. "No payments for 18 months, 48 month financing at a 3%AR." b. " 0% AR financing for 5 years (60 months). " c. " 2% AR financing with 36 monthly payments and no payments or interest for TWO years." 5. Assume that you are the finance officer for an equipment dealer. The owner has asked you to determine the markup needed for the following financing packages. Assume that you need to net (today) $650,000 on a particular machine for the dealership to break even and that market interest rates are 6% AR. All payment plans are to involve monthly payments. You will advertise a common "list price" with a separate "rebate amount" for each financing alternative. Your marketing department want to have a rebate amount of at least $5,000 for all financing options. Find the minimal common list price and associated rebate amounts that provides your company a present value (or "net") of \$650,000 for each financing plan. a. "No payments for 18 months, 48 month financing at a 3%AR." b. " 0% AR financing for 5 years (60 months). " c. " 2% AR financing with 36 monthly payments and no payments or interest for TWO years

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