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A-D please XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $46,679. The dealer allows XYZ to
A-D please
XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $46,679. The dealer allows XYZ to trade-in the old truck for $5,353.XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3% : How much is the monthly payment? If XYZ can only pay $836 monthly, and the dealer does not accept trade-in, given 3% interest rate, how much of the new pick-up truck can XYZ afford? On second thoughts, XYZ decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost \$3,342. After the retrofit, the annual fuel and maintenance cost will be $782 for the first year and increases by $194 each year. XYZ 's minimum attractive rate of return is 4%. If XYZ will get rid of the old truck in six years, what is the total present cost of retrofit? Without the retrofit, the annual fuel and maintenance cost will be $1,918 for the first year and increases at a rate of 8% each year. Given XYZ 's minimum attractive rate of return is still 4%. If XYZ will get rid of the old truck in six years, what is the total present cost of not retrofit Step by Step Solution
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