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satela [25.4K]
3 years ago
15

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a

12% APR based on end-of-month payments.
What is the most expensive car you could afford if you finance it for 48 months?What is the most expensive car you could afford if you finance it for 60 months?
Business
1 answer:
Temka [501]3 years ago
4 0

Answer:

 48 MONTHS

PV = Down payment + $450(1 - (1 + r/m)-mn - 1)

                                                         r/m

PV = $5,000 + $450(1 - (<u>1 + 0.12/12</u>)-12x4 - 1)

                                            0.12/12

PV = $5,000 + $450(1 -<u>(1 + 0.01)</u>-48 - 1)

                                           0.01

PV = $5,000 + $450(37.9740)

PV = $5,000 + $17,088

PV = $22,088

60 MONTHS

PV = $5,000 + $450(1 - <u>(1 + 0.12/12)</u>-12x5 - 1)

                                            0.12/12

PV = $5,000 + $450(1 -<u>(1 + 0.01)</u>-60 - 1)

                                           0.01

PV = $5,000 + $450(44.9550)

PV = $5,000 + $20,230

PV = $22,230

         

Explanation:

In this case, we need to calculate the present value of the car which is a function of down payment plus the present value of the monthly payments at 12% discount rate.

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Becker Bikes manufactures tricycles. The company expects to sell 520 units in May and 650 units in June. Beginning and ending fi
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Answer:

The budgeted variable overhead for May is $5,335

The budgeted variable overhead for June is $7,260

The budgeted fixed overhead for both May and June is $11,500 per month

Explanation:

First we have to determine how many tricycles does Becker Bikes expects to manufacture during May and June:

May:

beginning inventory May           180

expected sales May                   520

ending inventory May                 145

Becker is planning to manufacture 485 tricycles (= 520 + 145 -180)

June:

beginning inventory May           145

expected sales May                   650

ending inventory May                 155

Becker is planning to manufacture 660 tricycles (= 650 + 155 -145)

The budgeted variable overhead for May = 485 tricycles x $11 per tricycle = $5,335

The budgeted variable overhead for June = 660 tricycles x $11 per tricycle = $7,260

The fixed overhead for both May and June is $11,500 per month

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3 years ago
For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: the market value of eq
vagabundo [1.1K]

Answer:

The market value of equity should be used.

Explanation:

Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.

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Answer:

Dustup forgot to the consumers if the add-on will give them more satisfaction from using their product.  

Explanation:

The market is always king. Getting first-hand information about what consumers need and how they need it is the best way to go about creating a product or modifying an existing one to become more profitable.

The removal of the brochures from the bottles showed that shoppers didn't necessarily want their product. What they wanted was to be able to make contact with the company and get more information on how to revive their old wooden floors.

Cheers!

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Assuming that transactions costs are sufficiently low, the Coase theorem results in the economic pie being maximized, regardless
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Answer:

Explanation:

Based on the information provided within the question it can be said that the main impact of the legal constraints would be that they have the ability to change the way that the economic pie is divided among the different parties, which in term can completely change their well-being. This is because those that receive more wealth are able to provide a better quality of life that those that did not.

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Individuals, corporations, and economies specialize because the opportunity cost of producing goods and services differs from country to country, business to business, and individual to individual.

Persons, Corporations, and Economies are bound to specialize in the production of goods and or services in which they hold a stronger comparative advantage than their competition.

<h3>What is comparative advantage?</h3>

This is defined as the ability of an individual, corporate entity, or national to perform an economic activity more efficiently or at a lower (opportunity cost) than the other.

Examples of economic activities are:

  • Resource management
  • production of services and goods
  • distribution of services and goods
  • consumption of services and goods

See the link below to learn more:

brainly.com/question/7045530

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