Purchase by an installment contract with a down payment

Assignment Help Business Management
Reference no: EM131768354

A new tractor can be acquired by:

1. Outright purchase for cash, at a cost of $64,500.

2. Purchase by an installment contract with a down payment of 20% of the purchase price and four equal annual payments, which is $15,406 per year.

3. A four-year lease plan with annual payments of $12,250 at the beginning of each year followed by a purchase at a buyout price of $30,000 at the end of the fourth year. The opportunity cost of capital is 6%. Which financing alternative would you choose by using net present value method?

Reference no: EM131768354

Questions Cloud

Perform a simulation study on the sensitivity of the test : Perform a simulation study on the sensitivity of the ?2 test for the uniform distribution to expected cell counts below 5.
Find the p-value for fisher exact test : Suppose 10 cups of coffee, 5 decaf and 5 regular, are served according to Fisher's design. Find the p-value for Fisher's exact test.
Discuss the constitutional protection involved : Discuss the Constitutional protection involved. In your opinion, did the order violate the Constitutional rights of the protestors? Why or why not?
Find the chemical formula for the compound marked : Find the chemical formula for the compound marked - Explain how a ceramic coating can be applied and discuss the advantages of the three techniques.
Purchase by an installment contract with a down payment : Purchase by an installment contract with a down payment of 20% of the purchase price and four equal annual payments, which is $15,406 per year.
How do the p-values change : Suppose 6 of the 10 cups of coffee in the experiment described in Exercise are regular and the remaining 4 are decaf. How do the p-values change?
Describe the use of 5 specific types of data : Can you help describe the use of 5 specific types of data that should be considered when making the "buying vs renting" decision for a home
Compute the p-value for the z test : Compute the p-value for the z test using the continuity correction. That is, find the chance that at most 2.5 cups are incorrectly labeled.
What conclusions concerning the management of accounts : What conclusions concerning the management of accounts receivable can be drawn from this data

Reviews

Write a Review

Business Management Questions & Answers

  Of the six dimensions on the questionnaire

Of the six dimensions on the questionnaire (traits, ability, skills, behavior, relationships, and process), which two are the most similar to your own beliefs?

  What made the decisions that day groupthink

BSMGT- What made the decisions that day groupthink? How does a manager avoid groupthink in a team environment? Support your post using the readings and videos provided, being sure to cite sources intext in APA format.

  Output of the typical firm is decreasing while industry

output of the typical firm is decreasing while industry output is increasing. how?if economic profits exist in an

  Thickness of photoresist applied

The thickness of photoresist applied to wafers in semiconductor manufacturing at a particular location on the wafer is uniformly distributed between 0.2050 and 0.2150 micrometers.

  Why you feel the distribution strategy is most appropriate

discuss why you feel the distribution strategy is most appropriate for that product based on the factors listed above in the week's readings.

  Budgeting a thing of the past

With the health care environment changing so rapidly, is budgeting a thing of the past? Why is it important for healthcare firms to create and monitor budgets? Are there better ways for health care leaders to monitor and control costs?

  Determine what market conditions made the business possible

Consider the way Dell started his company; determine what market conditions made the business possible. Discuss Dell's approach to building his brand.

  Six categories of cost

show which ones are used in making an incremental cost analysis and why. Choose a product and discuss it in terms of these six categories of costs.

  What will the beta of the portfolio

What will the Expected Rate of Return on this portfolio be? Do you feel that the three-stock portfolio is sufficiently diversified or does it still have risk that can be diversified away? Explain.

  What is the maximum price

What is the maximum price you would pay for the share today if you wanted to earn a 12.48% p.a. return?

  About the rate of growth of the nominal gdp

What can you say about the rate of growth of the nominal GDP in the 2000s? Carefully explain how you obtained your answer from the information given.

  Question about readiness for performance dashboards

Describe several reasons why an organization may not be ready (organizationally or technically) for the implementation of performance dashboards.

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