Question
JTM is considering purchasing a small Cessna for corporate travel. The price is$700,000. The dealer is offering a payment plan in which JTM pays 50%
JTM is considering purchasing a small Cessna for corporate travel. The price is$700,000. The dealer is offering a payment plan in which JTM pays 50% down and finances the rest over 12 months at $30,499/month. What is the implicit financing rate? If JTM's WACC is 7.9%, should it accept the financing offer?
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Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
