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Possible points: 30 a. Draw a cash-flaw diegram for both options H1 Economics - short calculations ( 5 pts) b. Seloct the best alternative a)
Possible points: 30 a. Draw a cash-flaw diegram for both options H1 Economics - short calculations ( 5 pts) b. Seloct the best alternative a) How much should you deposit in your saving account monthly if you want to have 2 million dellars by the time you retire in 40 years from now. Assume an annual interest rate of 4.5% compourbled monthly. b) You want to but a Ford F150 lighting. The cheapest modol cost $51,974, You can mako a payment of 50005 of purchase but reed to finance the rest of the purchose. The figure below glves you the Interest rotes for the car purchese compounded monthly depending on the loan duration. Cakulete the monthly payment if you finnnce the vehicle for I. 3 years II. 5 years \#2 Economics {15 pts } You have to choose between projects A and B using the following cash flow. Calculate and choose the best option using... a) Net future value (NFV) b) Intemal rate of retum (IRR) c) Benefit/cost analysis H3 Economics - comparing alternatives ( 10 pts) The city of East Lansing is considering purchesing now buses. They hava diffarent initial costs, operating and maintenarce costs and benefits. Possible points: 30 a. Draw a cash-flaw diegram for both options H1 Economics - short calculations ( 5 pts) b. Seloct the best alternative a) How much should you deposit in your saving account monthly if you want to have 2 million dellars by the time you retire in 40 years from now. Assume an annual interest rate of 4.5% compourbled monthly. b) You want to but a Ford F150 lighting. The cheapest modol cost $51,974, You can mako a payment of 50005 of purchase but reed to finance the rest of the purchose. The figure below glves you the Interest rotes for the car purchese compounded monthly depending on the loan duration. Cakulete the monthly payment if you finnnce the vehicle for I. 3 years II. 5 years \#2 Economics {15 pts } You have to choose between projects A and B using the following cash flow. Calculate and choose the best option using... a) Net future value (NFV) b) Intemal rate of retum (IRR) c) Benefit/cost analysis H3 Economics - comparing alternatives ( 10 pts) The city of East Lansing is considering purchesing now buses. They hava diffarent initial costs, operating and maintenarce costs and benefits
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