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You want to buy a new car. If your cost of capital is 6%, what is the value of your car today? Please include the
You want to buy a new car. If your cost of capital is 6%, what is the value of your car today? Please include the steps to solve the problem using a financial calculator using the cash flow and NPV worksheet. (I keep getting a value that is about $500 off the correct value and I don't know why)
The payment terms are:
$5,000 down payment due today
$6,000 per year for 3 years with the first payment being due one year from today
$10,000 final payment due 3 years from today
A) $51,338.12
B) $37,987.54
C) $29,434.26
D) $34,481.27
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