What is the current value of the lease

Assignment Help Finance Basics
Reference no: EM132455643

Your car dealer is willing to lease you a new car for $309 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 2.9 percent, what is the current value of the lease?

Reference no: EM132455643

Questions Cloud

What is the firm weighted average cost of capital : The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent.
What is the total cost for one year of holding : If Halliday can holdmarketable securities that yield 5 percent, and then convert these securities to cash at a cost of only the $2 deposit charge
What is the cost of equity-southern home cookin : The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equity?
Write a paper concerning middle class and democracys future : Write a paper using the author Francis Fukuyama concerning the Middle Class and Democracys Future - Paper must be 2 pages and double space must be in MLA format
What is the current value of the lease : Your car dealer is willing to lease you a new car for $309 a month for 60 months. Payments are due on the first day of each month starting with the day you sign
What is the present value : What is the present value of $12,750 to be received 4 years from today if the discount rate is 6.00 percent?
Julie purchased eleven acres of land costing : Today, that land is valued at $56,338. How long has she owned this land if the price of the land has been increasing at 5 percent per year?
Article Summary - The Faked Apollo Landings : Assignment - Please read the article - The Faked' Apollo Landings: Evidence Of NASA Airbrushing Out Moon Anomalies. And Summary of content
How long has she owned this land if the price : How long has she owned this land if the price of the land has been increasing at 5 percent per year?

Reviews

Write a Review

Finance Basics Questions & Answers

  Capital expenditures and investment

For a large, multinational corporation like IBM, there are many challenges in the capital budgeting process. This part of the project will use IBM's website

  Find equivalent annual compounded interest rate it generated

Assume that 10 years ago you invested $1000 in a Treasury Bond. Today you are offered $2000 for the bonds. What is the equivalent annual compounded interest.

  General purpose for developing an elevator brief

What is the general purpose for developing an elevator brief"? What are the aspects of a company which should be addressed in an elevator brief?

  Describe glass-steagall act of 1933 and its eventual repeal

Briefly describe the Glass-Steagall Act of 1933 and its eventual repeal. Was it a good idea or bad?

  How many years are there until the bond? matures

The bond pays annual coupons with a coupon rate of 3?% and the next coupon is due in one year. The bond has a yield to maturity of 8.75?%.

  What is the yield to call of the bond

A 5.50 percent coupon bond with 13 years left to maturity can be called in four years. The call premium is one year of coupon payments.

  Calculate the total service department cost allocated

The number of employees is used as the allocation base for all service department costs. Calculate the total service department cost allocated to each production department P1.

  What will the new cost of retained earnings

If inflation is expected to increase by 0.03 next year, but everything else remains the same, what will the new cost of retained earnings?

  What is the expected return on xyz stock

The firm plans to increase the dividend by 7.8 percent per year indefinitely. What is the expected return on XYZ stock?

  What is the effective cost of credit to worthington

Worthington's commercial paper will be placed at a cost of $35,000. What is the effective cost of credit to Worthington?

  How does a dutch auction work

How does a Dutch auction work? Not more than 4 short sentences.

  Calculate brauer debt ratio

Calculate Brauer's debt ratio assuming the firm uses only debt and common equity. Round your answer to two decimal places.

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