Compute the effective sales price under these payment terms

Assignment Help Financial Management

Reference no: EM131579561

You received an offer to purchase property that includes the following terms: sales price of $650,000, payable as follows: $50,000 at closing, and $200,000 payable one year after closing, two years after closing and three years afterward. Compute the effective sales price under these payment terms. Assume you are concerned with the buyer’s ability to make payments over time, what counter offer would you make that would eliminate concerns over payment terms. Assume $650,000 is the fair market value of the property.

Reference no: EM131579561

Questions Cloud

Most important issues : Need help writing a lengthy paper on: The most important issues you have identified in the case and how they can be addressed currently and avoided.

Examine argument that twitter created a strong sense : Using the Ashridge Sense of Mission Model analyse the case evidence to critically examine the argument that Twitter have created a strong sense of mission

Define the graphical method for the critical depth : Water is flowing in a trapezoidal channel at a rate of Q = 20 m3/s. The critical depth y for such channel must satisfy the equation 0 = 1 - Q2/gA3c B.

Discuss the distance of the peanut dish to the participant : the distance of the peanut dish to the participant and whether the peanuts are shelled or unshelled, but would the weight of the dish

Compute the effective sales price under these payment terms : Compute the effective sales price under these payment terms.

What must be true about the y-values at the maxima : Draw the graph of a function which has two maxima and two relative maxima.

Time value of money assignment : Dominic Joseph deposits $5,000 in a new savings account at his local bank. How much will be paid to the lender for interest each year?

Methods require for the same capital investment : Ocean water contains 0.9 ounces of gold per ton. Method A costs $550 per ton of water processed and will recover 90% of the metal. Method B costs $400 per ton.

Determining the interest rate on a home mortgage : A person's credit score is important in determining the interest rate on a home mortgage.

User Account

All Pages