Develop and present evidence supporting the one bestalternative. You are the paid consultant and decision-maker....

Develop and present evidence supporting the one best alternative. You are the paid consultant and decision-maker. You are required to make the best decision for all clients.

$13,999 sticker price

1.2% negotiated discount

plus state sales tax

choose one plan:

0.0% APR, 1.5 years, and $400 cash allowance rebate

1.5% APR, 2 years

2.3% APR, 4 years

3.1% APR, 5 years

What type of information system?

What are your concerns and final decision?

Solutions

Expert Solution

Particulars	$
Sticker Price	13999
Less: negotiated discount	167.988
Negotiated Price	13831.01

OPTION
	Amount in $
Particulars	Immediate	2nd Year	4th Year	5th Year
Negotiated Price	13831.01	13831.01	13831.01	13831.01
Less :Cash Discount	400	0	0	0
Price after Cash Discount	13431.01	13831.01	13831.01	13831.01
Inflation Rate	1	1.21	1.4641	1.61051	Let's Assume inflation rate is 5%
Present Value	13431.012	11430.6	9446.77	8587.97

As a best decision ,we can go for 5th year option as it is showing less costs ($8587.97)

jeff jeffy answered 2 years ago

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