Answer:
a. In order to determine the present value of lease we can use the same APR as the car loan (7%). We can use the present value of an annuity formula:
PV = monthly payment x annuity factor
- monthly payment = $509
- PV annuity factor, 0.58333%, 48 periods = 41.76344
PV of the annuity = $509 x 41.76344 = $21,257.59
total present value of lease contract = $21,257.59 + $109 = $21,366.59
b. the present value of purchasing the car is $40,000 - $28,000/1.07⁴ = $40,000 - $21,361.07 = $18,638.93
c. the break even resale price = (sales price - PV of lease) x (1 + 7%/12)⁴⁸ = ($40,000 - $21,366.59) x (1 + 0.07/12)⁴⁸ = $18,633.41 x 1.32205 = $24,634.37
Many companies view the marketing environment as an<u> </u><u>Uncontrollable</u><u> </u><u>element</u> to which they must react and adapt.
Market is a place where the consumers and sellers meet in order to purchase and sell goods respectively. Market runs on many factors which include the availability of the goods, the demand for the goods and easy flow of cash. According to some companies and experts marketing environment is uncontrollable as it comes with risks too. Also, the demand for a particular good cannot be controlled by the market as it solely depends on the consumers. For example, if there is a demand of milk chocolate in the market but market has surplus of dark chocolate then the demand for milk chocolate is uncontrollable. The risk factors include economic factors as well as the political factors.
Learn more about Market at:
brainly.com/question/26511540
#SPJ4
Answer:
the inflation rate was 8 percent and the nominal interest rate was 11 percent
Explanation:
Nominal interest rate is the rate without considering the inflation.
It was an art form in Egypt as well as in Greece<span />
Answer:
ROE= 6%
Explanation:
Return on equity is the measure of a business profitability as related the owner's equity. It shows how well a company is making profits on shareholder funds.
Return on investment (ROE)= Profit Margin * Capital intensity ratio * Equity multiplier
To calculate the profit margin
Profit margin= Net income/Gross Income
Profit margin= 42,800/947,100
Profit margin= 0.045
Substitute in formula for ROE
ROE= 0.045* 0.87* 1.53
ROE= 0.06= 6%
