Question
In: Finance
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $50,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $50,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $215 per
day plus $1.75 per mile. Most of the trips are 80 or 100 miles in
total. Marsha usually gives Joe Laminitis, the driver, a $40 tip.
With the new transporter she will only have to pay for diesel fuel
and maintenance, at about $0.60 per mile. Insurance costs for
Marsha’s transporter are $1,950 per year.
The transporter will probably be worth $30,000 (in real terms)
after eight years, when Marsha’s horse Spike will be ready to
retire. Assume a nominal discount rate of 7% and a 3% forecasted
inflation rate. Marsha’s transporter is a personal outlay, not a
business or financial investment, so taxes can be ignored.
Calculate the NPV of the investment. (Do not round
intermediate calculations. Round your answer to the nearest whole
dollar amount.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $50,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $50,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $215
per week plus $1.75 per mile. Most of the trips are 90 miles in
total. Marsha usually gives the driver a $40 tip. With the new
transporter she will only have to pay for diesel fuel and
maintenance, at about $.60 per mile. Insurance...
. Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost...
. Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $35,000. The object is to save on
horse transporter rentals. Marsh had been renting a transporter
every other week for $200 per day plus $1.00 per mile. Most of the
trips are 80 or 100 miles in total. Marsha usually gives her
driver, Joe Laminitis, a $40 tip. With the new transporter she will
only have to pay for diesel fuel and maintenance, at...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $46,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $46,000. The object is to save on
horse transporter rentals. Marsha had been renting a transporter
every other week for $211 per week plus $1.55 per mile. Most of the
trips are 90 miles in total. Marsha usually gives the driver a $45
tip. With the new transporter she will only have to pay for diesel
fuel and maintenance, at about $.56 per mile. Insurance...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $35,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $35,000. The object is to save on
horse transporter rentals. Marsh had been renting a transporter
every other week for $200 per day plus $1.00 per mile. Most of the
trips are 80 or 100 miles in total. Marsha usually gives her
driver, Joe Laminitis, a $40 tip. With the new transporter she will
only have to pay for diesel fuel and maintenance, at about...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $36,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $36,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $201 per
day plus $1.05 per mile. Most of the trips are 80 or 100 miles in
total. Marsha usually gives Joe Laminitis, the driver, a $45 tip.
With the new transporter she will only have to pay for diesel fuel
and maintenance, at about...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $35,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $35,000. The object is to save on
horse transporter rentals. Marsh had been renting a transporter
every other week for $200 per day plus $1.00 per mile. Most of the
trips are 80 or 100 miles in total. Marsha usually gives her
driver, Joe Laminitis, a $40 tip. With the new transporter she will
only have to pay for diesel fuel and maintenance, at about...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $36,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $36,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $201
per week plus $1.05 per mile. Most of the trips are 90 miles in
total. Marsha usually gives the driver a $45 tip. With the new
transporter she will only have to pay for diesel fuel and
maintenance, at about $.46 per mile. Insurance...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $41,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $41,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $206
per week plus $1.30 per mile. Most of the trips are 90 miles in
total. Marsha usually gives the driver a $45 tip. With the new
transporter she will only have to pay for diesel fuel and
maintenance, at about $.51 per mile. Insurance...
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $47,000....
Marsha Jones has bought a used Mercedes horse transporter for
her Connecticut estate. It cost $47,000. The object is to save on
horse transporter rentals.
Marsha had been renting a transporter every other week for $212
per week plus $1.60 per mile. Most of the trips are 90 miles in
total. Marsha usually gives the driver a $50 tip. With the new
transporter she will only have to pay for diesel fuel and
maintenance, at about $.57 per mile. Insurance...
A woman dies, leaving her only surviving daughter an estate of $50,000. The money is invested at...
A woman dies, leaving her only surviving daughter an estate of
$50,000. The money is invested at j (4) =
8%. How many quarterly payments of $1500 will the
daughter receive? What would be the amount of any final
payment, were it to be paid 3 months after the last full $1500
installment?
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