Question
: WLD is a local company. The company is planning to get 10 cars for the business. The company has two options Option 1: Purchase
: WLD is a local company. The company is planning to get 10 cars for the business. The company has two options Option 1: Purchase these cars Option 2: Rent a car Purchase Option: The cost of the car is 125000 sh. They have to pay 2000 sheqel. license fees for each car. The company needs to pay 20% of the cars price, monthly payment, to be paid over 5 years. Each car needs a yearly mintainace of 2000 sh. The company expects that the company can sell the car for $35000 at the end of the 5th year. Rent the car: the company has to pay 1500 sh monthly. The first payment starts today. The company still need to pay license fees, 30% of the maintenance cost, Calculate the NPV of each proposal Which Option
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