Answer: Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.
Explanation:
OPTION 1
A buyer pays 60 monthly instalments and the interest rate is 0%. This tells us that there is no interest the value of the debt (Which is the price of 2003 Protege S hatchback) will not increase over the period of 60%, with this option time value of money is not considered.
Option 2
The buyer receives a Rebate of $3600 if the car is paid for in cash. The buyer qualifies for a loan at an effective rate of 7% per annum. The amount of a loan will be the Price of a 2003 Protege S Hatchback. Assuming the Loan will also ave a period of 60 months, The Total amount Payable over the period of 60 months equals Loan Monthly payments multiplied by 60 months. The buyer receives a rebate of $3600, therefore The Net Amount Payable for Option 2 financing is found by multiplying Loan monthly payments by 60 months then subtract the Cash Rebate received of $3600
Let us now compare the two options to find out how Large must the Car be for option A to be preferable.
Y = The Price of a 2003 Protege Hatch Back, Which also equals the amount of debt over a period of 60 years (option A has no interest)
Monthly Payments of a loan = P
number of Periods = 60 months
Debt in 60 months versus Loan payments multiplied by 60 months - rebate
Therefore Y ∠ P x 60 months - $3600
Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.
Answer:
2.56 years
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
payback period = amount invested / cash flows
cash flows = $510,000 - $360,000 = $150,000
$384,000 / $150,000 = 2.56 years
Answer and Explanation:
Heidi Ganahl is explaining the preparing aspect of the management process. The first management role is the planning component which is the management process.
Heidi, before the new franchise is created, will have to clarify the performance standards and metrics. It will need to include detailed, but easy-to-understand plans, involving strategic planning, to ensure continuity between the new owner and the entire franchise.
Answer:
B. $123,000
Explanation:
The computation of the Paul's cost of going to college is presented below:
= Tuition fees + room and board charges + books expenses + earning as a construction job - room and board charges
= $90,000 + $15,000 + $7,000 + $22,000 - $11,000
= $123,000
We simply deduct the room and board charges while working as a construction job and the other items would be added
