Question
In: Finance
if you decide to buy a Ferrari it will cost $200000 after 4years you could sell...
if you decide to buy a Ferrari it will cost $200000 after 4years you could sell it for $60000. You would have to do a major service after 2 years costing $8000 and a minor service after 1st and 3rd year for $4000.
if you decide to lease the Ferrari you would pay $30000 per year. You dont need to pay for services since the leasing company will take care of it.
Assuming MARR of 10% perform an evaluation if you should lease or buy the Ferrari using PW, EAC and IRR?
Solutions
jeff jeffy answered 10 months agoRelated Solutions
You own a house that cost $200000 to build. You buy a $15000 insurance policy to...
You own a house that cost $200000 to build. You buy a $15000
insurance policy to compensate you for damage to the house. The
deductible $25000.(If your house suffers $4000 damage from a storm,
you pay for all repairs yourself. If the house suffers $45000, in
damage, you pay$25000 and the insurance company pays the remaining
$20000.)
Graph the positions of the unhedged home, the home insurance
and the hedged home position on the profit and loss diagram. In the...
You buy a stock for $34 per share and sell it for $36 after you collect...
You buy a stock for $34 per share and sell it for $36 after you
collect a $1.00 per share dividend. Your pre-tax holding period
return is
a. 5.56 percent
b. 4.65 percent
c. 2.94 percent
d. 8.82 percent
e. 5.88 percent
in order to decide whether you should buy sell or hold stocks with Fortescue Metals Group...
in order to decide whether you should buy sell or hold stocks
with Fortescue Metals Group Limited (FMG.AX) an investment
recommendation report is needed. The report provides an assessment
of the company's current position and future prospects,
incorporating the use of various valuation techniques to arrive at
estimates of the intrinsic value of the company's shares. Your
report should make a case for the company's shares to be rated in
one of the following ways:
Evaluate the relative historical financial...
in order to decide whether you should buy sell or hold stocks with Fortescue Metals Group...
in order to decide whether you should buy sell or hold stocks
with Fortescue Metals Group Limited (FMG.AX) an investment
recommendation report is needed. The report provides an assessment
of the company's current position and future prospects,
incorporating the use of various valuation techniques to arrive at
estimates of the intrinsic value of the company's shares. Your
report should make a case for the company's shares to be rated in
one of the following ways:
Evaluate the relative historical financial...
Suppose you can buy a new car for $15,000 and sell it for $6,000 after six...
Suppose you can buy a new car for $15,000 and sell it for $6,000
after six years. Or, you can lease the car to $300 per month for
three years and return it at the end of the three years. Assume
that lease payments are made yearly instead of monthly (i.e., are
$3,600 per year for each of the three years).
a.) If the interest rate, r, is 4 percent, should you lease or
buy?
b.) What if the interest...
You found your dream house. It will cost you $200000 and you will put down $35000...
You found your dream house. It will cost you $200000 and you
will put down $35000 as a down payment. For the rest you get a
30-year 5.5% mortgage. What will be your monthly mortgage payment
in $ (assume no early repayment)?
Your Answer:
Question 11 options:
Answer
Hide hint for Question 11
Mortgage monthly payment
N=30 years*12 month each year=360
I/Y=monthly interest rate= annual interest rate/12
PV= house price- down payment (money you will need to borrow
from the...
You found your dream house. It will cost you $200000 and you will put down $40000...
You found your dream house. It will cost you $200000 and you
will put down $40000 as a down payment. For the rest you get a
30-year 5.5% mortgage. What will be your monthly mortgage payment
in $ (assume no early repayment)?
You’re trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can...
You’re trying to save to buy a new $195,000 Ferrari. You have
$32,000 today that can be invested at your bank. The bank pays 3.9
percent annual interest on its accounts.
How long will it be before you have enough to buy the car? (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
length of time _____ years
You're trying to save to buy a new $170,000 Ferrari. You have $40,000 today that can...
You're trying to save to buy a new $170,000 Ferrari. You have
$40,000 today that can be invested at your bank. The bank pays 5.5
percent annual interest on its accounts. How long will it be before
you have enough to buy the car?
Multiple Choice
27.02 years
25.02 years
27.52 years
26.77 years
27.27 years
You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can...
You’re trying to save to buy a new $180,000 Ferrari. You have
$29,000 today that can be invested at your bank. The bank pays 3.6
percent annual interest on its accounts.
How long will it be before you have enough to buy the car?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Length of Time in years?
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