want to buy a new car. The price of the car is $25,000 but the dealer is offering two different incentives, what is the total cost of each offer? 7. 0% APR for 48 months a. 8. $3,000 cash back and 48 month loan at 5.9% Interest (compounded monthly) a. 9. Which offer would you choose? a. You are looking at two possible machines for a new molding project. One is used and will require some additional maintenance. The other is new and very efficient, but very expensive. The project will run for five years. Assume an interest rate of 8.5%/yr. New Machine Used Machine $56,000 Initial Cost Annual operating cost Salvage value Lifespan 6,520 1,000 $120,000 1,500 62,000 5 5 10. Use a present value analysis to determine the best choice. (HINT: Draw yourself cash flow timelines for each scenario) a