Hi I had another big question The first question you answered for me was good, so I decided to come to you again Here is the question and I will also need the work on excel 1 The bonds issued by Jensen Son bear a 6 percent coupon, payable semiannually The bond matures in 8 years and has a $1,000 face value Currently, the bond sells at par What is the yield to maturity A 5 87 percent B 5 97 percent C 6 00 percent D 6 09 percent E 6 17 percent QUESTION 2 A General Co bond has an 8 percent coupon and pays interest annually The face value is $1,000 and the current market price is $1,020 50 The bond matures in 20 years What is the yield to maturity A 7 79 percent B 7 82 percent C 8 00 percent D 8 04 percent E 8 12 percent QUESTION 3 Winston Enterprises has a 15 year bond issue outstanding that pays a 9 percent coupon The bond is currently priced at $894 60 and has a par value of $1,000 Interest is paid semiannually What is the yield to maturity A 8 67 percent B 10 13 percent C 10 16 percent D 10 40 percent E 10 45 percent QUESTION 4 Wine and Roses, Inc offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7 73 percent The bonds mature in 9 years What is the market price of a $1,000 face value bond A $953 28 B $953 88 C $1,108 16 D $1,401 26 E $1,401 86 QUESTION 5 Your firm offers a 10 year, zero coupon bond The yield to maturity is 8 8 percent What is the current market price of a $1,000 face value bond A $473 26 B $430 24 C $835 56 D $919 12 E $1,088 00 QUESTION 6 You intend to purchase a 10 year, $1,000 face value bond that pays interest of $60 every 6 months (semiannual) If your nominal annual required rate of return is 10 percent with semiannual payments, how much should you be willing to pay for this bond A $ 826 31 B $1,086 15 C $ 957 50 D $1,431 49 E $1,124 62 QUESTION 7 The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows as follows Years 1 through 4 $30,000 per year Years 5 through 9 $35,000 per year Year10$40,000per year This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent What is the NPV for this investment A $135,984 B $ 18,023 C $219,045 D $ 51,138 E $ 92,146 QUESTION 8 Your firm wants to save $250,000 to buy some new equipment three years from now The plan is to set aside an equal amount of money on the first day of each year starting today The firm can earn a 4 7 percent rate of return How much does the firm have to save each year to achieve their goal A $75,966 14 B $76,896 16 C $78,004 67 D $81 414 14 E $83,333 33 QUESTION 9 Your great aunt left you an inheritance in the form of a trust The trust agreement states that you are to receive $2,500 on the first day of each year, starting immediately and continuing for fifty years What is the value of this inheritance today if the applicable discount rate is 6 35 percent A $36,811 30 B $37,557 52 C $39,204 04 D $39,942 42 E $40,006 09 QUESTION 10 Your car dealer is willing to lease you a new car for $299 a month for 60 months Payments are due on the first day of each month starting with the day you sign the lease contract If your cost of money is 4 9 percent, what is the current value of the lease A $15,882 75 B $15,906 14 C $15,947 61 D $16,235 42 E $16,289 54 QUESTION 11 Toni adds $3,000 to her savings on the first day of each year Tim adds $3,000 to his savings on the last day of each year They both earn a 9 percent rate of return What is the difference in their savings account balances at the end of thirty years A $35,822 73 B $36,803 03 C $38,911 21 D $39,803 04 E $40,115 31 QUESTION 12 You borrow $149,000 to buy a house The mortgage rate is 7 5 percent and the loan period is 30 years Payments are made monthly If you pay for the house according to the loan agreement, how much total interest will you pay A $138,086 B $218,161 C $226,059 D $287,086 E $375,059 QUESTION 13 Marko, Inc is considering the purchase of ABC Co Marko believes that ABC Co can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively After that time, they feel the business will be worthless Marko has determined that a 14 percent rate of return is applicable to this potential purchase What is Marko willing to pay today to buy ABC Co A $19,201 76 B $21,435 74 C $23,457 96 D $27,808 17 E $31,758 00 QUESTION 14 You have some property for sale and have received two offers The first offer is for $189,000 today in cash The second offer is the payment of $100,000 today and an additional $100,000 two years from today If the applicable discount rate is 8 75 percent, which offer should you accept and why A You should accept the $189,000 today because it has the higher net present value B You should accept the $189,000 today because it has the lower future value C You should accept the second offer because you will receive $200,000 total D You should accept the second offer because you will receive an extra $11,000 E You should accept the second offer because it has a present value of $194,555 42 QUESTION 15 On August 1, you borrow $160,000 to buy a house The mortgage rate is 7 5 percent The loan is to be repaid in equal monthly payments over 15 years The first payment is due on September 1 How much of the third payment applies to the principle balance A $483 22 B $486 24 C $489 28 D $492 30 E $495 32 QUESTION 16 On December 1, you borrow $210,000 to buy a house The mortgage rate is 8 25 percent The loan is to be repaid in equal monthly payments over 20 years The first payment is due on January 1 Which one of the following statements is true assuming that you repay the loan as agreed A The total amount paid is about $429,442 B The monthly payment is $2,037 30 C The total interest paid is $278,952 D The monthly interest rate is 75 percent E The first payment reduces the principle balance by $1,443 75 QUESTION 17 What is the net present value of a project that has an initial cash outflow of $12,670and the following cash inflows The required return is 11 5 percent Year Cash Inflows 1 $4,375 2 $ 0 3 $8,750 4 $4,100 A $370 16 B $768 20 C $218 68 D $1,249 65 E $1,371 02 QUESTION 18 You are considering two mutually exclusive projects with the following cash flows Will your choice between the two projects differ if the required rate of return is 8percent rather than 11 percent If so, what should you do YearProject AProject B 0 $240,000 $198,000 1 $ 0 $110,800 2 $ 0 $82,500 3 $325,000 $45,000 A yes Select A at 8 percent and B at 11 percent B yes Select B at 8 percent and A at 11 percent C yes Select A at 8 percent and select neither at 11 percent D no Regardless of the required rate, project A always has the higher NPV E no Regardless of the required rate, project B always has the higher NPV QUESTION 19 It will cost $2,600 to acquire a small ice cream cart Cart sales are expected to be $1,400 a year for three years After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system What is the payback period of the ice cream cart A 86 years B 1 46 years C 1 86 years D 2 46 years E 2 86 years QUESTION 20 Yancy is considering a project which will produce cash inflows of $900 a year for 4 years The project has a 9 percent required rate of return and an initial cost of $2,800 What is the discounted payback period A 3 11 years B 3 18 years C 3 82 years D 4 18 years E never QUESTION 21 Braun Industries is considering an investment project which has the following cash flows YearCash Flow 0 $1,000 1 400 2 300 3 500 4 400 The company's cost of funds is 10 percent What is the project's payback, internal rate of return, and net present value A Payback 2 4, IRR 10 00 , NPV $600 B Payback 2 4, IRR 21 22 , NPV $260 C Payback 2 6, IRR 21 22 , NPV $300 D Payback 2 6, IRR 21 22 , NPV $260 E Payback 2 6, IRR 24 12 , NPV $300 QUESTION 22 As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows Project X Project Z YearCash FlowCash Flow 0 $100,000 $100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denver's cost of capital is 15 percent, which project would you choose A Neither project B Project X, since it has the higher IRR C Project Z, since it has the higher NPV D Project X, since it has the higher NPV E Project Z, since it has the higher IRR QUESTION 23 Two projects being considered are mutually exclusive and have the following projected cash flows Project A Project B YearCash FlowCash Flow 0 $50,000 $50,000 1 15,625 0 2 15,625 0 3 15,625 0 4 15,625 0 5 15,625 99,500 If the required rate of return on these projects is 10 percent, which would be chosen and why A Project B because it has the higher NPV B Project B because it has the higher IRR C Project A because it has the higher NPV D Project A because it has the higher IRR E Neither, because both have IRRs less than the cost of capital QUESTION 24 Usethisinformationforthenext3questions LugarIndustriesisconsideringaninvestmentinanewmachinewiththefollowinginformation Machinecost225,000Setupcost25,000Salvagevalue50,000Life5yearsNetoperatingexpensesavings EndofYear1$50,000EndofYear2$90,000EndofYear3$110,000EndofYear4$120,000EndofYear5$120,000WACC10 Taxrate40 Assumedvalueofthemachineatendof5yearsis$50,000 IfLugarbuysthemachine,calculatethefollowinganswers Remembertoincludetheimpactofdepreciation,taxes,andsalvagevalue CalculatetheNPV Youneedtotakeintoaccountdepreciation,taxesandsalvagevalueintoaccountwhencalculatingthisproblem Roundyouanswertothenearestwholenumber Donotuse$,commas,ordecimalpoints) QUESTION 25 Based on the above information, calculate the IRR Round you answer to the nearest two decimal places Do not use ) (For example, 34 4550 would be entered as 34 46 QUESTION 26 Based on your calculations, should Lugar buy the machine Yes No QUESTION 27 Lucinda Diamanti is 10 years old today (August 15th) and while all shes interested in is her new bike, her parents Mr Mrs Diamanti are considering how they will pay for her college education beginning in 8 years They decide to set up a meeting with their financial adviser Cindy Morgan to discuss an education savings plan During the meeting, the Diamantis inform Cindy that they have $8,000 they can use to begin the savings plan , and from what they can determine, Lucinda will require 4 years to complete her undergraduate degree in molecular biology Cindy consults a reputable college reference to see that tuition costs are currently estimated at $32,000 per year and are expected to grow at 4 each year for the foreseeable future The Diamantis are concerned that they wont have enough money and ask Cindy how to make sure they have enough to completely pay for Lucindas undergraduate education The Diamantis inform Cindy that they want to make deposits into the education savings plan on an annual basis until Lucindas first year in college at which point they will stop making contributions Cindy tells them they can earn 8 annual interest on their savings plan Your job to answer the following two questions (You may assume there are 8 years between today and the beginning of Lucindas first day in college) Assuming the estimates on tuition costs are correct, how much money needs to be in the account when Lucinda begins college in 8 years to fund 4 years of college Round your answer to a whole number (No $ signs, commas, or decimal points) QUESTION 28 How much money do the Diamantis need to deposit annually in order to reach their goal to fund Lucindas education fully Remember that theDiamantis have $8,000 to invest today Round your answer to a whole number (No $ signs, commas, or decimal points) QUESTION 29 Please use the following facts to analyze this nest two questions Assume you just received a bill for services you and have the following two payment options Option 1 Pay the entire bill of $600 now Or Option 2 Pay $130 now And $130 for each of the next 4 months What annual interest rate (APR) are you paying if you choose Option 2 Assume monthly compounding Round you answer to the nearest two decimal points Do not use $, commas or For example, 25 34 would be entered as 25 34 QUESTION 30 What Effective Annual Rate are you paying if you choose Option 2 Assume monthly compounding Round you answer to the nearest two decimal points Do not use $, commas or For example, 25 34 would be entered as 25 34 QUESTION 31 Please use the following facts to analyze the next two questions Facts and Assumptions Lease Term in Months 24 Lease Down Payment $ 500 00 Monthly Lease Payments $ 300 00 Sales Tax Rate 8 Lease Buyout at End $15,000 00 Title Fee $ 25 00 Car Loan Market Rate 7 Outright Purchase Price Before Tax and Title $19,500 00 What is the NPV of the lease Round you answer to the nearest whole number Do not use $, commas, or decimal points and enter as a positive number For example, $34,567 50 would be entered as 34568 QUESTION 32 What would it cost you tobuy the car today if you were paying cash Round you answer to the nearest whole number Do not use $, commas, or decimal points and enter as a positive number For example, $34,567 50 would be entered as 34568

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Hi I had another big question. The first question you answered for me was good, so I decided to come to you again. Here is

Hi I had another big question. The first question you answered for me was good, so I decided to come to you again. Here is the question and I will also need the work on excel.

1. The bonds issued by Jensen & Son bear a 6 percent coupon,payable semiannually. The bond matures in 8 years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity?

A.
5.87 percent

B.
5.97 percent

C.
6.00 percent

D.
6.09 percent

E.
6.17 percent

QUESTION 2

A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity?

A.
7.79 percent

B.
7.82 percent

C.
8.00 percent

D.
8.04 percent

E.
8.12 percent

QUESTION 3

Winston Enterprises has a 15-year bond issue outstanding that pays a 9 percent coupon. The bond is currently priced at $894.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

A.
8.67 percent

B.
10.13 percent

C.
10.16 percent

D.
10.40 percent

E.
10.45 percent

QUESTION 4

Wine and Roses, Inc. offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?

A.
$953.28

B.
$953.88

C.
$1,108.16

D.
$1,401.26

E.
$1,401.86

QUESTION 5

Your firm offers a 10-year, zero coupon bond. The yield to maturity is 8.8 percent. What is the current market price of a $1,000 face value bond?

A.
$473.26

B.
$430.24

C.
$835.56

D.
$919.12

E.
$1,088.00

QUESTION 6

You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months (semiannual). If your nominal annual required rate of return is 10 percent with semiannual payments, how much should you be willing to pay for this bond?

A.
$ 826.31

B.
$1,086.15

C.
$ 957.50

D.
$1,431.49

E.
$1,124.62

QUESTION 7

The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows as follows: Years 1 through 4 $30,000 per year Years 5 through 9 $35,000 per year Year10$40,000per year This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent.What is the NPV for this investment?

A.
$135,984

B.
$ 18,023

C.
$219,045

D.
$ 51,138

E.
$ 92,146

QUESTION 8

Your firm wants to save $250,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of money on the first day of each year starting today. The firm can earn a 4.7 percent rate of return. How much does the firm have to save each year to achieve their goal?

A.
$75,966.14

B.
$76,896.16

C.
$78,004.67

D.
$81.414.14

E.
$83,333.33

QUESTION 9

Your great-aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,500 on the first day of each year, starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6.35 percent?

A.
$36,811.30

B.
$37,557.52

C.
$39,204.04

D.
$39,942.42

E.
$40,006.09

QUESTION 10

Your car dealer is willing to lease you a new car for $299 a month for 60 months. Payments are due on thefirst dayof each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, what is the current value of the lease?

A.
$15,882.75

B.
$15,906.14

C.
$15,947.61

D.
$16,235.42

E.
$16,289.54

QUESTION 11

Toni adds $3,000 to her savings on thefirst dayof each year. Tim adds $3,000 to his savings on thelast dayof each year. They both earn a 9 percent rate of return. What is the difference in their savings account balances at the end of thirty years?

A.
$35,822.73

B.
$36,803.03

C.
$38,911.21

D.
$39,803.04

E.
$40,115.31

QUESTION 12

You borrow $149,000 to buy a house. The mortgage rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?

A.
$138,086

B.
$218,161

C.
$226,059

D.
$287,086

E.
$375,059

QUESTION 13

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a 14 percent rate of return is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

A.
$19,201.76

B.
$21,435.74

C.
$23,457.96

D.
$27,808.17

E.
$31,758.00

QUESTION 14

You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable discount rate is 8.75 percent, which offer should you accept and why?

A.	You should accept the $189,000 today because it has the higher net present value.
B.	You should accept the $189,000 today because it has the lower future value.
C.	You should accept the second offer because you will receive $200,000 total.
D.	You should accept the second offer because you will receive an extra $11,000.
E.	You should accept the second offer because it has a present value of $194,555.42.

QUESTION 15

On August 1, you borrow $160,000 to buy a house. The mortgage rate is 7.5 percent. The loan is to be repaid in equal monthly payments over 15 years. The first payment is due on September 1. How much of the third payment applies to the principle balance?

A.
$483.22

B.
$486.24

C.
$489.28

D.
$492.30

E.
$495.32

QUESTION 16

On December 1, you borrow $210,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on January 1. Which one of the following statements is true assuming that you repay the loan as agreed?

A.	The total amount paid is about $429,442.
B.	The monthly payment is $2,037.30.
C.	The total interest paid is $278,952.
D.	The monthly interest rate is .75 percent.
E.	The first payment reduces the principle balance by $1,443.75.

QUESTION 17

What is the net present value of a project that has an initial cash outflow of $12,670and the following cash inflows? The required return is 11.5 percent. Year Cash Inflows 1 $4,375 2 $ 0 3 $8,750 4 $4,100

A.
$370.16

B.
$768.20

C.
$218.68

D.
$1,249.65

E.
$1,371.02

QUESTION 18

You are considering two mutually exclusive projects with the following cash flows.Will your choice between the two projects differ if the required rate of return is 8percent rather than 11 percent? If so, what should you do? YearProject AProject B 0 -$240,000 -$198,000 1 $ 0 $110,800 2 $ 0 $82,500 3 $325,000 $45,000

A.	yes; Select A at 8 percent and B at 11 percent.
B.	yes; Select B at 8 percent and A at 11 percent.
C.	yes; Select A at 8 percent and select neither at 11 percent.
D.	no; Regardless of the required rate, project A always has the higher NPV.
E.	no; Regardless of the required rate, project B always has the higher NPV.

QUESTION 19

It will cost $2,600 to acquire a small ice cream cart. Cart sales are expected to be $1,400 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?

A.
.86 years

B.
1.46 years

C.
1.86 years

D.
2.46 years

E.
2.86 years

QUESTION 20

Yancy is considering a project which will produce cash inflows of $900 a year for 4 years. The project has a 9 percent required rate of return and an initial cost of $2,800. What is the discounted payback period?

A.
3.11 years

B.
3.18 years

C.
3.82 years

D.
4.18 years

E.
never

QUESTION 21

Braun Industries is considering an investment project which has the following cash flows: YearCash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company's cost of funds is 10 percent.What is the project's payback, internal rate of return, and net present value?

A.	Payback = 2.4, IRR = 10.00%, NPV = $600.
B.	Payback = 2.4, IRR = 21.22%, NPV = $260.
C.	Payback = 2.6, IRR = 21.22%, NPV = $300.
D.	Payback = 2.6, IRR = 21.22%, NPV = $260.
E.	Payback = 2.6, IRR = 24.12%, NPV = $300.

QUESTION 22

As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: Project X Project Z YearCash FlowCash Flow 0 -$100,000 -$100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denver's cost of capital is 15 percent, which project would you choose?

A.	Neither project.
B.	Project X, since it has the higher IRR.
C.	Project Z, since it has the higher NPV.
D.	Project X, since it has the higher NPV.
E.	Project Z, since it has the higher IRR.

QUESTION 23

Two projects being considered are mutually exclusive and have the following projected cash flows: Project A Project B YearCash FlowCash Flow 0 -$50,000 -$50,000 1 15,625 0 2 15,625 0 3 15,625 0 4 15,625 0 5 15,625 99,500 If the required rate of return on these projects is 10 percent, which would be chosen and why?

A.	Project B because it has the higher NPV.
B.	Project B because it has the higher IRR.
C.	Project A because it has the higher NPV.
D.	Project A because it has the higher IRR.
E.	Neither, because both have IRRs less than the cost of capital.

QUESTION 24

Usethisinformationforthenext3questions:
LugarIndustriesisconsideringaninvestmentinanewmachinewiththefollowinginformation:Machinecost225,000Setupcost25,000Salvagevalue50,000Life5yearsNetoperatingexpensesavings:EndofYear1$50,000EndofYear2$90,000EndofYear3$110,000EndofYear4$120,000EndofYear5$120,000WACC10%Taxrate40%Assumedvalueofthemachineatendof5yearsis$50,000
IfLugarbuysthemachine,calculatethefollowinganswers.Remembertoincludetheimpactofdepreciation,taxes,andsalvagevalue.
CalculatetheNPV.Youneedtotakeintoaccountdepreciation,taxesandsalvagevalueintoaccountwhencalculatingthisproblem.Roundyouanswertothenearestwholenumber.Donotuse$,commas,ordecimalpoints)

QUESTION 25

Based on the above information, calculate the IRR. Round you answer to the nearest two decimal places. Do not use %) (For example, 34.4550% would be entered as 34.46.

QUESTION 26

Based on your calculations, should Lugar buy the machine?
Yes No

QUESTION 27

Lucinda Diamanti is 10 years old today (August 15th) and while all shes interested in is her new bike, her parents Mr. & Mrs. Diamanti are considering how they will pay for her college education beginning in 8 years. They decide to set up a meeting with their financial adviser Cindy Morgan to discuss an education savings plan. During the meeting, the Diamantis inform Cindy thatthey have $8,000 they can use to begin the savings plan, and from what they can determine, Lucinda will require 4 years to complete her undergraduate degree in molecular biology. Cindy consults a reputable college reference to see that tuition costs are currently estimated at $32,000 per year and are expected to grow at 4% each year for the foreseeable future. The Diamantis are concerned that they wont have enough money and ask Cindy how to make sure they have enough to completely pay for Lucindas undergraduate education. The Diamantis inform Cindy that they want to make deposits into the education savings plan on an annual basis until Lucindas first year in college at which point they will stop making contributions. Cindy tells them they can earn 8% annual interest on their savings plan. Your job to answer the following two questions (You may assume there are 8 years between today and the beginning of Lucindas first day in college):

Assuming the estimates on tuition costs are correct, how much money needs to be in the account when Lucinda begins college in 8 years to fund 4 years of college? Round your answer to a whole number. (No $ signs, commas, or decimal points)

QUESTION 28

How much money do the Diamantis need to deposit annually in order to reach their goal to fund Lucindas education fully? Remember that theDiamantis have $8,000 to invest today.Round your answer to a whole number. (No $ signs, commas, or decimal points)

QUESTION 29

Please use the following facts to analyze this nest two questions: Assume you just received a bill for services you and have the following two payment options: Option 1: Pay the entire bill of $600 now Or Option 2: Pay: $130 now And $130 for each of the next 4 months
What annual interest rate (APR) are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34.

QUESTION 30

What Effective Annual Rate are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34.

QUESTION 31

Please use the following facts to analyze the next two questions:

Facts and Assumptions:
Lease Term in Months	24
Lease Down Payment	$ 500.00
Monthly Lease Payments	$ 300.00
Sales Tax Rate	8%
Lease Buyout at End	$15,000.00
Title Fee	$ 25.00
Car Loan Market Rate	7%
Outright Purchase Price Before Tax and Title	$19,500.00

What is the NPV of the lease? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as apositivenumber. For example, -$34,567.50 would be entered as 34568.

QUESTION 32

What would it cost you tobuy the car today if you were paying cash? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, $34,567.50 would be entered as 34568.