Q1 you have euro12 000 in cash you can deposit it today in

Assignment Help Finance Basics

Reference no: EM13355482

Q. 1) You have €12 000 in cash. You can deposit it today in the mutual fund earning 8.2% semi-annually, or you can stay, benefit from some of it, and invest €11 000 in your brother's business in 2 years. Your brother is assuring you a return of at least 10% on your investment. Either alternative you select, you will require to cash in at the end of ten years. suppose your brother is trustworthy and both investments carry similar risk.

2) Jack comes to a decision to purchase a car. He can also lease the car or buy it with the 3 year loan. Car he wants to purchase costs $45,000. Dealer has the special leasing arrangement where he pays $1 today and $650 per month at commencement of each month for next 3 years. If he purchases car, he will pay it off in monthly payments over next 3 years at an 10% annual percentage interest rate (APR) with monthly compounding. He also believes that he will be able to sell car for= $30,000 in 3 years.

Question: Compute the present value of the total costs if Jack decides to lease the car?

Reference no: EM13355482

Questions Cloud

This will provide you with insight on how others perceive : this will provide you with insight on how others perceive you. it will be particularly useful in situations in which

Question read the news article china trade barriers a : question read the news article china trade barriers a serious concern u.s.

Community board of realtors casenbspthe real estate : community board of realtors casenbspthe real estate business relies on an extensive amount of information used in the

Q 1 how determine the npv by using required rate of return : q. 1 how determine the npv by using required rate of return when there are no given cash flows? three year expansion

Q1 you have euro12 000 in cash you can deposit it today in : q.1 you have euro12 000 in cash. you can deposit it today in the mutual fund earning 8.2 semi-annually or you can stay

Qi would like to figure out the relevant cost in some cost : q.i would like to figure out the relevant cost in some cost flight operation salaries of flight crew fuel maintenance

Q1 it some respects karl marx could be thought of as one of : q1. it some respects karl marx could be thought of as one of the last of the classical economists. analyze this

Qconsider the application of the demand-revealing process : q.consider the application of the demand-revealing process to land assembly that we discussed in class. we defined d as

Q 1 why a favorable shock to the production function tends : q. 1. why a favorable shock to the production function tends to reduce the price level p. how could the monetary

User Account

All Pages