What is the cost of leasing in today dollars

Assignment Help Financial Accounting

Reference no: EM132774229

A car can be purchased for $33,800 today and an additional payment of $4,000 in 3 years from today. It would then be sold (salvage value) after 7 years for $7,000 . Alternatively, it could be leased for 7 years with 449.00 end of the month payments. Using DCF and a cost of money of % compounded annually, which option is better or cheaper?

Problem a. What is the cost of buying in today's dollars (DCF)

Problem b. What is the cost of leasing in today's dollars (DCF)

Reference no: EM132774229

Questions Cloud

Explain the two types of innovation : There were two types of innovation addressed this week (product and process innovation), please note your own personal definition of these concepts and offer.

Developing an organizational chart : Briefly explain seven of the guidelines to follow in developing an organizational chart.

Prepare academic paper and synthesis of prior research : Prepare an academic paper and synthesis of prior research, which will be posted to the Group Discussion area for interaction with your colleagues.

Prepare comparative statements of shareholders equity : Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s)

What is the cost of leasing in today dollars : What is the cost of leasing in today's dollars (DCF). A car can be purchased for $33,800 today and an additional payment of $4,000 in 3 years from today.

Total quality of management : Research the Six Sigma and Lean Manufacturing techniques, its principles and their usage. Also describe how the industries and companies are utilizing this tech

In-house laundry or the outsource contractor : You are the Executive Housekeeper for a new 285-room hotel in British Columbia. Please answer the following questions:

Analyse whether the cgu are impaired : Analyse whether the CGU's are impaired. Ayamee Bhd's management conducted an impairment testing at 31 December 2017 and determined the recoverable amount

Explain strategic leadership. : Compare your organization or one that you are familiar with, to another organization based on research from the CSU Global Library,

User Account

All Pages