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satela [25.4K]
4 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]4 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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Answer:

a. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments.

Explanation:

The cash budget is the budget that represents the receipts and payment of transactions held in cash

It includes the interest and dividend payment as it shows the outflow of cash if payment is made in cash

Moreover, it also affects the DSO and includes cash inflows with related to the long term sources such as issuance of bonds

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The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. The new va
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Answer:

competitive advantage

Explanation:

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because b i think gimme vbucks

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9. Do you believe it is possible for a global company to simultaneously achieve the goals of global efficiency and integration,
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<h2>The given statement is true.</h2>

Explanation:

Let us understand the term, "Global Company".

Any company which is known for its business world-wide is termed as "Global company".

The given statement in the question is true. Yes a global company can achieve everything listed.

Since the company is efficient, they can start business all over the world.

Definitely the can span across the world, only by first satisfying the need of the nation.

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3 years ago
The balance sheet of ABC reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The r
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Answer:

ABC net income for the year is $42,500

Explanation:

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = Beginning total assets + Ending total assets ÷ 2

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Therefore,

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Net income = 0.1 × Average total assets

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= $42,500

7 0
4 years ago
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