You can buy a car that is advertised for $24,000 on the following terms: (a) Pay $24,000

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You can buy a car that is advertised for $24,000 on the following terms:

(a) Pay $24,000 and receive a $2,000 rebate from the manufacturer;

(b) Pay $500 a month for 4 years for total payments of $24,000, implying zero percent financing. Which is the better deal if the interest rate is 1 % per month'?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:10 AM

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You can buy a car that is advertised for $24,000 on the following terms: (a) Pay $24,000

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a The present value of the payments ...View the full answer

Fundamentals of Corporate Finance

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