User Account

All Pages

What is the difference in the eac of the two cars

Assignment Help Finance Basics
Reference no: EM133121502

You are trying to pick the least expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $13,000 to purchase and which will have OCF of -$1,200 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $23,000 to purchase and which will have OCF of -$550 annually throughout that vehicle's expected five-year life. Both cars will be worthless at the end of their life. If you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future, and if your business has a cost of capital of 16 percent, what is the difference in the EAC of the two cars?

Reference no: EM133121502

Questions Cloud

Find 5 green sector early-stage public companies : Find 5 Green Sector early-stage public companies (listed on a stock exchange so you can look up their financials). They must be a startup as well.
Determine the flexible budget would show fixed costs : Contribution Margin 29,300 and Fixed Costs (21,500). If Carlos actually produced 2,900 units, determine the flexible budget would show fixed costs
Hedging of mortgage-backed securities : On Wednesday, 14 August 2019, the 10-year yield dropped below the 2-year yield for the first time since before the credit crisis, leading to an inverted yield c
Company average collection period : ABC company reported average receivables of $550,000 in 2021. If total sales were $3,500,000 and 50% of these sales were on credit, what was company's average c
What is the difference in the eac of the two cars : You are trying to pick the least expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $13,000 to purchase and which
How much should it report as a foreign exchange gain : The U.S. dollar equivalent was $191,900. In Brief's 2021 consolidated income statement, how much should it report as a foreign exchange gain
Calculate the bond value based on required rate of return : The bond's current market value is 115.50 (that is, 115.50%% of par value). Calculate the bond value based on the required rate of return
Strategic vision and mission statement : The distinction between a strategic vision and a mission statement is fairly clear-cut: A strategic vision portrays a company's aspirations for its future
Calculate the separate-entity interest expense for period : Black Ltd. acquired 80% of the 100,000 voting shares of Mlack Inc. on July 1, 2021. Calculate the separate-entity interest expense for period

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the project equivalent annual cost

A project with a life of 11 has an initial fixed asset investment of $14,700, an initial NWC investment of $1,400, and an annual OCF of -$22,400.

  Why is earnings per share not a consistently good measure

Why is earnings per share not a consistently good measure of a firm’s performance?

  What is the contribution per case

Mel, on the other hand, thinks that the price should be set at a level that will ensure a contribution of $85.00 per case. Based on Harvey's plan, what is the contribution per case? Based on Mel's target contribution per case, what is the breakeve..

  Why can an investor buy insurance on a risk

Why can an investor buy insurance on a risk that the investor does not actually have because the investor did not actually make the investment that is insured?

  Compute the firms net operating profit after taxes nopat

consider the following balance sheets and selected data from the income statement of keith corporation then prepare

  Consider an investor who purchased a stock

Consider an investor who purchased a stock at $100 per share. The current market price is $125. At what price would a limit order be placed to assure a profit of $30 per share?

  Electricity power generating facilities

Pacific Gas and Electric (ticker: PCG), the largest utility company in the state of California, filed for bankruptcy on January 29th, 2019 due to the anticipati

  Explain why a trader has to hedge

Risk can be divided into two types, namely systematic risk, and unsystematic risk. The former is a risk due to price movement and is market-related and it can b

  What is the implied volatility of the call option

Stock ABC has a current price of $25 and does not pay any dividends. An options trader, an alumnus of FIN 4021 class, pays $2 for a European call option written

  What should be your strategy under the such scenario

Due to the bullish trend of the market in underlying stock of option which is trading at $75. Based on the market estimate

  What is the price? of the treasury? bond

These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 11.6% and have five years to maturity.

  What is a credit union how does it di er from a commerical

What is a credit union? How does it di er from a commerical bank or S&L? How does a credit union's business model vary from the rest of the industry?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd