Buy motorcycle for delivery orders

Assignment Help Financial Management
Reference no: EM131450390

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,300 and is expected to run for 6 years; model B is more expensive, with a price of $15,700 and has an expected life of 9 years. The annual maintenance costs are $840 for model A and $750 for model B. Assume that the opportunity cost of capital is 11 percent. Calculate EAC for both the models and choose which one should you buy? (Round intermediate calculations and final answers to 2 decimal places, e.g. 15.25.)

Reference no: EM131450390

Questions Cloud

Identify positive reinforcements that might be included : Identify tasks and positive reinforcements that might be included in Billy's token economy chart given the behavior issues described in the case.
Discuss the interaction between business and management : Discuss the interaction between business and management function in a farming enterprice.
Calculate the npv of investment : The marginal tax rate is 35 percent, and the appropriate discount rate is 10 percent. Calculate the NPV of this investment.
Identify the types of common law defenses used in criminal : Identify the types of common law defenses used in criminal cases and analyze the similarities and differences among these types of defenses.
Buy motorcycle for delivery orders : You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. Calculate EAC for both the models and choose which one should you buy?
Define benefits of market impacts : The benefits related to social, environmental, and economic impacts are often categorized as eithermarketornonmarket impacts. Market benefits include.
Discuss about the common law defenses : you will complete your paper on common law defenses by examining the extent to which they may apply to death penalty cases.
What is the major attractive force in a compound like nacl : What is the major attractive force in a compound like NaCl? Which of following would have the highest melting temperature? The Atomic Mass on periodic table is.
What are the consequences for an agency : What are the consequences for an agency if only a small group of its officers or employees are responsible for adopting the community policing philosophy?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of the annuity

What is the present value of a $536 perpetuity discounted back to the present at 11.92 percent. What is the present value of the following annuity? You plan to apply for a loan from Bank of America. The nominal interest rate for this loan is 9.56 per..

  The unused portion of firm credit line

The unused portion of a firm s credit line is usually discussed in which part of the annual financial statement? A "clean up" period is _____.

  The amortization of flotation costs reduces taxes

Five years ago, Northwest Water (NWW) issued $40,000,000 face value of 30-year bonds carrying a 8% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $4 million of flotation costs on these bonds over their 3..

  Fast-growing firm recently paid a dividend

A fast-growing firm recently paid a dividend of $0.80 per share. The dividend is expected to increase at a 15 percent rate for the next three years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12 percent discount rate is app..

  Permit the holders to purchase one share of stock

Maese Industries had warrants outstanding that permit the holders to purchase one share of stock per warrant at a price of $25. We are to assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1000 par value bon..

  The range of estimates using present worth analysis

An equiptment alternative is being economically elavuated by three engineers at a consulting firm. The first cost will be $77k and the life is estimated at 6 years with a salvage value of 10k. What is the minimum amount of revenue per year that would..

  What will the total of troys new balance

What will the total of Troy's new balance be on his next credit card statement, taking into account finance charges?

  What is the net cash flow from operating activities

What is the net cash flow from operating activities? What is the net cash flow from investing activities? What is the net cash flow from financing activities? What is the change in cash?

  What is the prevailing interest rate

What is the prevailing interest rate if a perpetual bond were to pay $100,000 per year beginning next year and payments grow with the inflation rate at about 2% per year.

  What stock price will investor break even on purchase call

An investor buys a call at a price of $4.80 with an exercise price of $43. At what stock price will the investor break even on the purchase of the call?

  What is this stock worth to you per share today

XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%. What is th..

  About the portfolio return

Portfolio Return At the beginning of the month, you owned $6,200 of Company G, $8,500 of Company S, and $2,000 of Company N. The monthly returns for Company G, Company S, and Company N were 7.75 percent, -1.55 percent, and -.18 percent. What is your ..

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!

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