For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
A sense of urgency - in order for the business to grow, it has to have a sense of urgency and refrain from procrastination. It has to act fast and not be left behind by new business. Plan and act are the keywords.
Building a guiding coalition - a business cannot stand alone. It needs people to help it grow. We have to interact with others who may be able to help us with ideas and purpose.
Form strategic visions and initiatives - we have to know what we want in the future and must act to become that future.
Enlist a volunteer army - get someone knowledgeable and enthusiastic to start going with the future vision of the company.
Enable action by removing barriers - Have a straight vision of what you want for your business, don't look at the different direction that will just hamper your growth. Do strategies, visioning and have focus.
Sustain Acceleration - when you are gaining your goal, don't stop. Just continue to grow and make the most of every opportunity.
Institute Change - Be adaptive to the changing world. Upgrade and go with how things flow without sacrificing your goal.
a) To purchase the car, Lindsay will need to finance the dollar amount of <u>$10,000</u>.
b. In one year, the dollar amount of interest Lindsay will pay on loan is $300.
c. In two years, for Lindsay to finally OWN the car, the actual cost of the vehicle will be in dollars, that is (down payment + amount financed + 2 years interest = actual cost of the car) is <u>$12,600</u>.
<h3>What is a down payment?</h3>
A down payment is an initial payment made upfront for the purchase of an asset, which is being financed by another entity at a stated interest rate.
A down payment reduces the amount that is subject to the loan terms.
<h3>Data and Calculations:</h3>
Cost of a car = $12,000
Downpayment = $2,000
Car Loan = $10,000
APR = 3%
Interest for two years = $600 ($10,000 x 3% x 2)
Thus, since Lindsay is making a down payment of $2,000 for the car, she will finance $10,000 of the purchase costs.
Learn more about down payments at brainly.com/question/26173748
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Answer:
Equity Stripping
The lender makes a loan based upon the equity in your home, whether or not you can make the payments. If you cannot make payments, you could lose your home through foreclosures
