You own a sandwich shop in a neighborhood that has many other competing sandwich shops. This means your demand is probably _____
2 answers:
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Answer:
beginning inmediately: $ 140,095.127
after a year: $ 152,703.688
with a salvage value: $ 148,227.912
Explanation:
We need to find the PMT of 980,000 dollars being ordinary annuity or annuity-due discounted at 9%
Annuity-due:
PV $980,000.00
time 10
rate 0.09
C $ 140,095.127
Annuity:
PV $980,000.00
time 10
rate 0.09
C $ 152,703.688
If there is a salvage value, we discounted from the lease value:
980,000 - present value of salvage value:
Maturity $68,000.0000
time 10.00
rate 0.09
PV 28,723.93
980,000 - 28,724 = 951,276
<u>Now we calculate the PMT:</u>
PV $951,276.00
time 10
rate 0.09
C $ 148,227.912