How will be the cashflows for two loans

Assignment Help Business Economics
Reference no: EM131631847

Washing machine costs 25000.The washing machine company is trying to increase its sales. Thus it has offered to sell you the washing machine for $23,000 or charge you $25,000 and lend you $20,000 of the purchase price at 9%. Thus you will make a $5,000 down payment and make the annual payments based on a 9% (subsidized) rate or you will make a $3000 down payment and make the five annual payments without the subsidized rate (you have to pay 10% rate) How much cheaper is the discounted financing option? How will be the cashflows for two loans and compare their present value. Correct discount is 10% when you value two loans.

Reference no: EM131631847

Questions Cloud

Give a detailed explaination of the given question : give a detailed explaination of the question below. If information is obtained from a reference use "citation" where needed and provide reference.
Compute each project payback period : Doug's Custom Construction Company is considering three new projects, Compute each project's payback period
Usefulness of the statement of cash flows : What is the usefulness of the statement of cash flows? What does information contained in the statement of cash flows help investors?
Conflicting studies-one supports your companys new policies : Analyze this audience-what will they be interested in hearing about or not hearing about. How will you adapt your message to them
How will be the cashflows for two loans : How will be the cashflows for two loans and compare their present value. Correct discount is 10% when you value two loans.
What role does leadership play in improving care : What role does leadership play in improving care? How does this relate to nursing as a profession, as well as to an individual nurse?
Efficient market hypothesis : What is the intrinsic value of a stock under the efficient market hypothesis?
Tutorials is very challenging for a second language speaker : Participating in small group discussions and tutorials is very challenging for a second language speaker.
Define efficient market hypothesis : Define efficient market hypothesis as it relates to a firm.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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