Question
Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 3,700 dollars from Middlefield Motors today, pay 27,500 dollars
Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 3,700 dollars from Middlefield Motors today, pay 27,500 dollars to Middlefield Motors in 3 year(s), receive a cash rebate of 9,200 dollars from Middlefield Motors in 4 year(s), and pay 16,200 dollars to Middlefield Motors in 9 year(s). If the discount rate is 11.81 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero.
Preeti has an investment that is worth 52,500 dollars and has an expected return of 16.04 percent. The investment is expected to pay her 35,600 dollars in 3 year(s) from today and X dollars in 2 year(s) from today. What is X?
Silver Sun Aviation just bought a new coffee shop. To pay for the coffee shop, the company took out a loan that requires Silver Sun Aviation to pay the bank a special payment of 5,460 dollars in 6 month(s) and also pay the bank regular payments of 5,140 dollars each month forever. The interest rate on the loan is 1.01 percent per month and the first monthly payment of 5,140 dollars will be paid in 1 month. What was the price of the coffee shop?
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