MC Qu. 48 Your car dealer is willing to lease you a new car for... 23 Your car dealer is willing to lease you a new car for $319 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 3.9 percent, what is the current value of the lease? points Multiple Choice eBook O O $17,363.92 References O $17,739.35 O $17.420.35 $17.392.14 O O $17.682.92 P6-47 Present Value and Multiple Cash Flows [LO1] 25 What is the present value of $2,000 per year, at a discount rate of 9 percent, if the first payment is received 7 years from now and the last payment is received 22 years from now? 2 points Multiple Choice eBook References $16,625.12 $9,913.01 $9,61265 $9,714.75 $4,502.66 MC Qu. 55Meadow Brook Manor would like to buy some additional land and bu... 26 Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $26 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $1.8 million a quarter for this purpose. The firm earns 6 percent compounded quarterly on the funds it saves. How long does the company have to wait before expanding its operations? 1 points Multiple Choice eBook References 4.19 years O O 7.29 years 3.29 years O 6.09 years O 2.79 years MC Qu. 82Wicker Imports established a trust fund that provides... 27 Wicker Imports established a trust fund that provides $173,300 in scholarships each year for needy students. The trust fund earns a 4.00 percent rate of return. How much money did the firm contribute to the fund assuming that only the interest income is distributed? 1 points Multiple Choice eBook $6,932,000.00 G References $5,199,000.00 $3,466,000.00 O $4,077,402.40 O O O $4.332.500.00 P6-48 Variable Interest Rates (LO1] 29 A 20-year annuity pays $1,500 per month, and payments are made at the end of each month. The interest rate is 15 percent compounded monthly for the first Five years and 13 percent compounded monthly thereafter. 2 points Required: What is the present value of the annuity? eBook References Multiple Choice $116,927.68 $1,431,767.46 $119.313.96 $181,606-27 $121,700.23