Answer:
You should buy the car.
Explanation:
Note: See the attached excel file for the worksheet that shows calculations of the present values of the Lease and Buy Options.
In the attached excel file, we have:
Net present value of Lease Option = $3,654.01
Total present value of Buy Option = $4,135.47
Difference = Total present value of Buy Option - Present value of Lease Option = $481.46
The Difference above shows that the total present value of Buy Option is greater than the net present value of Lease Option by $481.46.
Since the total present value of Buy Option of $4,135.47 is greater than the net present value of Lease Option of $3,654.01, you should buy the car.
A automobile would be a asset
Answer:
a. True
Explanation:
The Activity variance is based on the difference in actual level of activity used in flexible budget and the level of activity accounted in the planning or master budget
Basically, the equity method is used to account the amount of an investment which is made by a company on an entity.However, this is done by an investor who contains a substantial amount of investment in the investee company.The investee records any adjustments in the other comprehensive income whereas the investor makes changes in the investment account.
The best transportation option for Jim is C. Utilizing his saving as a down payment and buying the car using an auto loan.
<h3>Further explanation
</h3>
Auto loan is a loan secured for the expressed purpose of purchasing a car. We can save money by paying off your car loan early. Because we are most likely more than halfway through our loan, most of our payment is currently going toward the principal.
There are four basic building blocks of a car loan:
1. Loan Cost
: the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the total amount of the costs accrued over the life of the loan based on the principal amount and the stated interest rate.
2. Interest Rate
: a basic rate charged to the borrower for the money loaned.
3. Down Payment
: an upfront amount of cash paid by the borrower at the time of the purchase of the vehicle.
4. Terms and Conditions
: all of the other items that make up a car loan, including the term of the loan, normally stated in a number of months or years; insurance and registration requirements; loan payoff and resale terms; etc
<h3>Learn more</h3>
- Learn more about auto loan of car brainly.com/question/12389122
- Learn more about Leasing car brainly.com/question/3068511
- Learn more about Renting car brainly.com/question/11856182
<h3>Answer details</h3>
Grade: 9
Subject: business
Chapter: car
Keywords: the market for a car, money, the best transportation option, saving, auto loan.