Calculate the Net Present Value (or cost) of an e-car over a period of 15 years.

Q: If the interest rate is 3.4% per annum, calculate the present value of (A) less the present value of…

A: The present value of two payment options helps compare the options and understand which one requires…

Q: Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in  insurance, and $525…

A: given Cost of Brand B $79000 and Brand M us $67000 Life of Brand B is 8 years and life of Brand M is…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

Q: A machine is priced at 100,000 TL by its seller. For the person who will buy the machine Talk useful…

A: We have to calculate the present value of all the future cash inflows.

Q: An energy-efficient motor may be purchased for $3,000 that will last for 5 years. It will save $800…

A: Present Worth: It is the notion of "present value" that asserts that a sum of money is worth more…

Q: You want to buy a new plant with a price of Rs. 400,000. The borrowing cost is 10% interest rate to…

A:

Q: person bought laptop for $ 10k . Seven years from now the salvage value is $ 500 . Other costs…

A: Present worth of asset is Present value of all cash inflow less present value of of all cash out…

Q: how long will it be before you have enough money for the down payment and closing costs?

A: Information Provided: Amount at hand (Present value) = 15,000 Down payment = 10% of house cost…

Q: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

Q: The 2023 Jaguar F-Pace SVR model costs $89,000. Using this information answer the following.   How…

A: Compound = monthly = 12Cost of Jaguar = c = $89,000Down Payment rate = d = 10%Time = t = 6 * 12 =…

Q: Suppose that you drive 24,000 miles per year and gas averages $4 per gallon. a. What will you save…

A: This is a case of financial analysis of fuel costs. Fuel costs depends on two factors – no. of miles…

Q: Consider a hybrid vehicle with a price of $30,000. This vehicle will average 30 miles per gallon of…

A: Data given:   Hybrid Vehicle: Price=$ 30,000 Average miles per gallon of gasoline=30   Gasoline only…

Q: A new oven will save $90 per year in electricity expense. How much can we afford to pay for this…

A: An annuity is a type of investment contract or financial instrument that gives the receiver, or…

Q: You are going to buy a new rooftop tent for your SUV/Truck. You can either pay $2,100 today for the…

A: We have to calculate present value of both option to compare which option is preferable.

Q: A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year.…

A: The payback period is a financial metric that is commonly used to determine how long it will take…

Q: An investment company wants to study the usage of new technology for one of its clients. This…

A: Human Hour Per month = 187 Average Savings per Human hour = $450 Average savings per month =…

Q: A new transmission in your truck will cost $5,000. Luckily, it should reduce maintenance expense by…

A: Profitability Index is a financial tool which tells whether an investment should be accepted or…

Q: A year from now, you wish to buy a scooter motorcycle with a projected cost of Php70,000. To save up…

A: PMT is the periodic installment.

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Given Data: Year Cash Flows131502315033150431505315063150731508315093150103150Initial…

Q: You are evaluating two different machines. Machine A costs $10,000, has a five-year life, and has an…

A: Equivalent annual cost (EAC) is a financial method employed to compare the annualized costs of…

Q: An energy conservation option with a first cost of $10,000 is installed. It requires $600 per year…

A: Life cycle costing is the calculation of the total amount which an entity will spend throughout the…

Q: How to compute Equivalent Annual Annuity on financial calculator: The old combine is good for 2…

A: Equivalent annual annuity (EAA) is an approach which is used to select best alternative between two…

Q: Econo - Cool air conditioners cost $390 to purchase, result in electricity bills of $168 per year,…

A: Equivalent annual cost is equivalent cost that includes the cost of purchase and also the cost of…

Q: How much will you pay for a $10,000 automobile in 20 years if the infla-tion rate averages 3 percent…

A: Information Provided: Present amount = $10,000 Term = 20 years Inflation rate = 3%

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given data; down payment amount = $3000 monthly payment = $400 Annual interest rate = 12% number of…

Q: You have purchased a canning machine for $7,000. You expect the machine to save your company $3,775…

A: The profitability index (PI) is a financial metric used to evaluate the attractiveness of an…

Q: NPV

A: Formula to calculate the NPV is: NPV = Cash flows/(1+i)^n - Initial investment

Q: t’s time to get a new laptop that is $2500. If you save up for it each month it will take one year…

A: monthly payment formula: pmt=p×rm1-1+rm-m×n where, p = principal amount r = rate of interest m =…

Q: A new delivery van costs $20,000 and can be financed for 60 months with a $4,000 down payment.…

A: The monthly payment is the amount that will be paid each month to repay the loan. It mainly depends…

Q: You are buying a car. You pay $15,000 today and $200 a month for three years. If the annual rate of…

A: Given, Amount paid for the car $15,000. Annual rate is 8%. monthly payment is $200. Term is 3 years.…

Q: A new oven will save $120 per year in electricity expense. How much can we afford to pay for this…

A: The present value is a method of finding the profitability of a project by discounting its cash…

Q: An incandescent nightlight bulb costs only $.30, last three years and uses $1.00 of electricity each…

A: Calculation of present value for nightlight bulb Year Cashflows ($) Present value factor @17%…

Q: .43% nominal yearly, compounded weekly, how much does this generator cost fam to purchase when…

A: Discount rate:It is the rate used to evaluate the amount of money that will be invested in the…

Q: Econo-Cool air conditioners cost $340 to purchase, result in electricity bills of $190 per year, and…

A: Equivalent Annual Cost (EAC) is the annualized cost of an investment, considering all relevant…

Q: A Chevrolet Sonic Hatchback costs $14,640.00. With a 9%​ down payment, you can have an amortized…

A: Initial cost of car = $14,640Down payment = initial cost of car * 9% = 14,640 * 0.09 = $…

Q: You estimate your monthly gas and maintenance expenses for your delivery vehicles will be $1,500 a…

A: Monthly expenses (P) = $ 1500 Period = 7 Years Period in months (N) = 7*12 = 84 Annual interest rate…

Q: suppose a new car today costs $18,000. If annual inflation for cars over the next 10 years is 3.2%,…

A: given, PV = $18000 N = 10 years R = 3.2%

Q: Required: What do you suggest should the plant be leased or purchased? Why? Please be fast

A: Information Provided: Tax rates = 40% Price of new plant = Rs 400,000 Maintenance fees = Rs 10,000…

Q: Suppose that you are thinking about buying a car and have narrowed down your choices to two options.…

A: For the purchases of large ticket items and big ticket items we usually get the purchase financed in…

Q: construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for…

A: Using present value and PMT function in Excel

Q: Econo-Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and…

A: Variables in the question:Econo -Cool air conditioners:Purchase price=$380Electricity bills per…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Present value is the value of the money in present times which is expected to be received in some…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.