Discuss the effect of discount rate on the feasibility

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Reference no: EM131891573

1. Suppose that you can buy a car now for S21 000. On the other hand, you can lease it at S360 per month for 60 months. If you buy a car now, then you will be able to sell it at the end of the fifth year for $9 000. If you choose to lease, what is the monthly and annual IRR of the leasedt he buying a car now?

2. Find the term of the compound interest loan. (Round your answer to two decimal places.) 5.9% compounded quarterly to obtain $8400 from a principal of $2000.

3. Discuss the effect of discount rate on the feasibility of the following systems investments: (a) High initial cost, relatively low rest of life (ROL) costs, and significant user benefits over ROL; (b) Low initial cost, significant ROL costs, and low ROL benefits.

Reference no: EM131891573

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