Question

In: Finance

Your pickup truck is high mileage and needing replacement. You have purchased a brand new F250...

Your pickup truck is high mileage and needing replacement. You have purchased a brand new F250 XLT 4 door pickup truck. You were able to negotiate a total cost of $38,000 for this vehicle. For convenience, you decided to trade your vehicle in, and the dealership is offering $5,000 for your car as a trade in. You have decided to finance this vehicle for 7 years through Texas Tech Federal Credit Union for 4.9%.
After making payments on your vehicle for two years, what is the balance remaining on the loan?

$ 26,885

$ 28,435

$ 24,694

$ 25,000

Solutions

Expert Solution

jeff jeffy answered 3 weeks ago
Next > < Previous

Related Solutions

You wish to purchase a new pickup truck. The dealership offers to finance $40,000 at a...
You wish to purchase a new pickup truck. The dealership offers to finance $40,000 at a 2% annual rate (AR) with 36 monthly payments. The first payment starts 6 months from now. Market interest rates are 4% AR. Determine your true cost of purchasing the pickup (i.e., the present value of your payments). Please show work. Thank you :)
Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected...
Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is 12.5 percent. Year/ Annual Operating Cash Flow/ Salvage Value 0/ $22,500/ $22,500 1/ 6,250/ 17,500 2/ 6,250/ 14,000 3/ 6,250/ 11,000 4/ 6,250/ 5,000 5/...
1. H Corp recently purchased a new delivery truck. The new truck has a cost of...
1. H Corp recently purchased a new delivery truck. The new truck has a cost of $56250 and is expected to generate after tax cash flows including depreciation of $15625 per year. The truck has a five year expected life. The expected year end abandonment Values (Salvage Value after tax adjustments) for the truck are given below. The company’s cost of capital is 11% Year                 Annual operating CF     Abandonment Value 0                      (56250)                         ---- 1                      15,625                          43750 2                      15,625                          35000 3                     ...
James, Inc., has purchased a brand new machine to produce its High Flight line of shoes....
James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 6 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $642,000. The sales price per pair of shoes is $95, while the variable cost is $43. Fixed costs of $335,000 per year are attributed to the machine. The corporate tax rate is 25 percent and the appropriate discount rate is...
James, Inc., has purchased a brand new machine to produce its High Flight line of shoes....
James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 6 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $636,000. The sales price per pair of shoes is $94, while the variable cost is $42. Fixed costs of $330,000 per year are attributed to the machine. The corporate tax rate is 24 percent and the appropriate discount rate is...
- Orange Inc. purchased a new truck on Oct 1, 2011 for $160,000. The truck was...
- Orange Inc. purchased a new truck on Oct 1, 2011 for $160,000. The truck was placed in service on the same day. The truck had an estimated life of 5 years with an estimated residual value of $10,000. Use excel spreadsheet to prepare depreciation tables which include depreciation expenses, accumulated depreciation, and book value of the truck over the asset's life under straight line, double decline balance and sum-of-years digits methods. Mango record depreciation to the closest whole month...
20. The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,...
20. The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is 6 percent. Year Annual Operating Cash Flow Salvage Value 0 -$22,500 $22,500 1 6,250 17,500 2 6,250 14,000 3 6,250 11,000...
Why is there a huge price difference on brand new textbooks being purchased at your local...
Why is there a huge price difference on brand new textbooks being purchased at your local College Bookstore compared to buying brand new on Amazon? Include barriers to entry, elasticity of demand,and economies of scale in your answer.
Ram Corporation purchased a new truck on January 1, 2020 for $50,000.  The truck is expected to...
Ram Corporation purchased a new truck on January 1, 2020 for $50,000.  The truck is expected to last five years with a residual value of $10,000.  Using straight-line depreciation, show the effect on the income statement and balance sheet of this transaction over the next five years. Income statement 2020                 2021                 2022                 2023                 2024 Depreciation expense    $8000               $8000               $8000               $8000               $8000 Balance Sheet 2020                 2021                 2022                 2023                 2024 Equipment                    $                      $                      $                      $                      $ Less: accumulated   Depreciation               (                   )       (                 )       (                 )        (                 )        (                  ) Book value                    $                      $                      $                      $                      $                                                                                                                                                              Part II – Chapter 8                                     Company A                   Company B                   Company C Days sales in receivables            8.3 days                        39.9 days                      60.3 days Days sales in inventory              2.3...
Tom's Truckers purchased a new truck for $160,000. The company expected the truck to last 5...
Tom's Truckers purchased a new truck for $160,000. The company expected the truck to last 5 years or 100,000 miles, with an estimated salvage value of 120,000 at the end of that time. In the first year, the truck was driven 24,000 miles. * As the account for Tom, you can depreciate this truck using the a.) Double declining balance or the b.) Units of production method. * Which method of depreciation will allow the largest write-off in the first...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT