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algol13
3 years ago
6

Giancarlo received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to make a

rational decision, Giancarlo has identified the following cash flow estimates: Negotiated price of new Suzuki XL 7 $24,675 Taxes and fees on a new car purchase $1,732 Proceeds from the trade-in of old car $9,285 Estimated value of the Suzuki XL7 in 5 years $7,285 Estimated value of old car in 5 years $3,572 Estimated annual repair cost on Suzuki XL7 $350 Estimated annual repair cost on old car $925 What would be Giancarlo’s initial investment in the Suzuki XL7?
Business
1 answer:
Anarel [89]3 years ago
3 0

Answer:

$17,122

Explanation:

Giancarlo's initial investment = price of new Suzuki XL 7 + taxes and fees related to the car purchase - proceeds from trading his old car

Giancarlo's initial investment = $24,675 + $1,732 - $9,285

Giancarlo's initial investment = $17,122

The initial investment doesn't take in account the resale value or the maintenance costs of the new vehicle.

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209,000 shares

Explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.

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3 years ago
When solving for a present value, all cash flows should be discounted from the A : future to the present. B : the past to the fu
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4 years ago
On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January
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Discount on bonds issuance = $15750

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A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

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Discount on bonds issuance = $15750

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