First offer is partially amortized with final payment equal

Assignment Help Financial Management
Reference no: EM131350556

Abdullatif Jamil, who now is giving two financial offers. Both offers have the same profit margin (flat rate) of % 3 for 5 years’ monthly payment.

The first offer is partially amortized with final payment equal to 25% of original car price.

The other choice (offer) would be without final payment (fully amortized).

It is all costumer choice!!

Which offer is better? And why?

Do the numbers.

Reference no: EM131350556

Questions Cloud

Assume that they can earn an annual rate of return : Jack and Jill have just had their first child. If college is expected to cost?$190,000 per year in 18 ?years, how much should the couple begin depositing annually at the end of each year to accumulate enough funds to pay the first? year's tuition at ..
Implied annual interest rate inherent in futures contract : It is January and Caustic Chemicals is considering issuing $500 million in bonds in June to raise capital for an expansion. Currently, CC can issue 20-year bonds with a 4% coupon (with interest paid semiannually), but CC is concerned that long-term i..
Purposes of the capital budgeting analysis : Your company purchased a piece of land five years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. what amount (if any) should the land be valued at for purposes of the capital budg..
Determine standard deviation of the expected return : Following are three economic states, their likelihoods, and the potential returns: Determine the standard deviation of the expected return.
First offer is partially amortized with final payment equal : Abdullatif Jamil, who now is giving two financial offers. Both offers have the same profit margin (flat rate) of % 3 for 5 years’ monthly payment. The first offer is partially amortized with final payment equal to 25% of original car price. The other..
About the portfolio return : Year-to-date, Yum Brands had earned a 4.90 percent return. During the same time period, Raytheon earned 5.18 percent and Coca-Cola earned −0.65 percent. If you have a portfolio made up of 30 percent Yum Brands, 40 percent Raytheon, and 30 percent Coc..
Inflation rate-treasury inflation-protected : In year 1979 the inflation rate was 10%, in USA. How much would be the payment of bond at 5% such as TIP, Treasury inflation-protected, who has a face value of 100,000 and 5% semiannual payment?
Leasing company leases an equipment : A professional, leasing company leases an equipment for 5 years contract on monthly payment basis. The lease rate is 15% of the equipment value. And the equipment depreciation rate is 5% . What is the company IRR?
What if you use geometric average growth rate : Suppose Stark Ltd. just issued a dividend of $1.85 per share on its common stock. The company paid dividends of $1.50, $1.59, $1.66, and $1.77 per share in the last four years. If the stock currently sells for $45, what is your best estimate of the c..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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