User Account

All Pages

Annual equivalent cost of replacing the vehicle

Assignment Help Finance Basics
Reference no: EM131975585

You are evaluating the purchase of a vehicle for your business. You've decided that the best choice is a car that will cost you $35,000, but you're uncertain how long you should plan on holding the car before you replace it. The table below lists the running costs and salvage value of the vehicle for each year.

12345Running Costs-3000-3500-4000-4500-5000Salvage Value25000 20000 15000 10000 5000

What is the annual equivalent cost of replacing the vehicle every 5 years? Assume your cost of capital is 10.5%. Enter your answer to the nearest cent. Ignore taxes.

(Your answer will be a cost, and therefore a negative number. Don't forget the minus sign.)

Reference no: EM131975585

Questions Cloud

Compute the value of sailsboro common stock today : Stockholders require a return of 10 percent to invest in Sailsboro's common stock. Compute the value of Sailsboro's common stock today
What is the return on assets for given year : A firm's after-tax operating income was $1,000,000 and after-tax interest expense was $200,000 in 2013. It started the year with $5,000,000 in equity financing.
Implicit after-tax interest rate on the operating : If the return on operating assets (ROOA) is 7%, the return on net operating assets (RNOA) is 10%, net operating assets are $265, and operating liabilities
Prepare the appropriate entries for the given events : The shareholders' equity section of the balance sheet of National Foods, Inc. included the following accounts. Prepare the appropriate entries for these events.
Annual equivalent cost of replacing the vehicle : What is the annual equivalent cost of replacing the vehicle every 5 years? Assume your cost of capital is 10.5%. Enter your answer to the nearest cent.
Determine the common-size statement value of inventory : A firm has sales of $1,040, net income of $226, net fixed assets of $495, and current assets of $321. The firm has $102 in inventory.
What is the security price : Consider a security with a face value of $100 000 to be repaid at maturity. The maturity of the security is three years. The coupon rate is 9% per
What is the net ordinary gain or loss from these transaction : Shan had the following gains and losses from Sec 1231 properties in 2014. What is the net ordinary gain or loss from these transactions?
Equity in the computation of sports wacc : If the common shares are selling for $25.2 per share, the preferred share are selling for $12.7 per share, and the bonds are selling for 96.98 percent of par

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd