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victus00 [196]
2 years ago
5

You have decided to buy a used car. The dealer has offered you two options: (FV of S1, PV of $1, FVA of $1, and PVA of $1) (Use

the appropriate factor(s) from the tables provided.)
a. Pay $540 per month for 25 months and an additional $10,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%.
b. Make a one-time payment of $16,638, due when you purchase the car.
1-a. Determine how much cash the dealer would charge in option (a). (Round your final answer to nearest whole dollar.) Present value
1-b. In present value terms, which offer is clearly a better deal?
a. Option a
b. Option b
c. The present values of the options are nearly the same
Business
1 answer:
Pachacha [2.7K]2 years ago
5 0

Answer:

1-a.

in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.

PVIFA = 19.523

Present value of the 25 payments = $540 x 19.523 = $10,542.42

+

Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10

PV = $16,930.52

Present value of option b = $16,638

1-b.

  • b. option b (lower present value)
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Answer: See explanation

Explanation:

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Some of the contemporary socio-economic issues that are faced by the society are poverty, corruption, illteracy, unemployment, etc.

These issues poses a challenge to the government and government seek ways to address them.

4 0
3 years ago
Make or BuyBlasingham Company is currently manufacturing Part Q108, producing 35,000 units annually. The part is used in the pro
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Explanation:

The computation is shown below:

Particulars                   Cost Per unit in ($)

Direct Materials           $6

Direct Labor                  $2  

Variable Overhead  $1.5

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So,

1. He will buy the product as it is a saving of $0.7 ($11.7 - $11)

2) The most price willing to pay is $11.7

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3 years ago
Which of the following is NOT one of the managerial considerations in determining how to compete successfully? How should a comp
hodyreva [135]

Answer:

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Explanation:      

A.  A more appealing product needs to be offered to rivals for new product.

B. planning of money.

C.  action plan for management function for achieving superior profitability.

D. The company should pursue, the long-term direction management.

E. conservative defense to project

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A. strategic intent

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D. business module.

E. strategic vision.

The objectives requires well groomed management to strive to:

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Answer:

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Answer:

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No No

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