A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $ 3150 each year for the next 10 years. What is the NPV of the transmission? Use a discount rate of 10.6%

A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $ 3150 each year for the next 10 years. What is the NPV of the transmission? Use a discount rate of 10.6%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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es A forklift will last for only 4 more years. It costs $6,900 a year to maintain. For $24,000 you can buy a new lift that can last for 12 years and should require maintenance costs of only $3,900 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Should you replace the forklift? b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 13% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Should you replace the forklift? a-1. Equivalent cost a-2. Should you replace the forklift? b-1. Equivalent cost b-2. Should you replace the forklift?
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You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent.$ What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $
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12. Calculate the mean (that is, calculate the arithmetic mean) of the following set of values. Round to the nearest tenth when applicable. 594 374 595 706 541 626 955
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A new furniture set costs $ 2100. If you make a down payment of $ 700 and finance the rest at a rate of 9.4% for 12 months, find the monthly payments on your loan. How much will you have paid in interest over the course of the loan? Repayment amount= Interest paid=

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