Island Water Taxi has decided to lease another boat for four years rather than finance the purchase of the boat at an interest rate of 8.7% compounded monthly. It has set up a long-term lease liability of $55,000. What is the lease payment at the beginning of each month? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Lease payment %24

Island Water Taxi has decided to lease another boat for four years rather than finance the purchase of the boat at an interest rate of 8.7% compounded monthly. It has set up a long-term lease liability of $55,000. What is the lease payment at the beginning of each month? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Lease payment %24

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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Loan calculations • An engineer wants to purchase a used car for $15,000. The dealer offered to finance the deal at 6.45% APR for 4 years with a 6% downpayment. Engineer's bank will provide a loan at 7.8% for 3 years, but want a 7% downpayment. a. Calculate the required downpayment and monthly payment for each loan option (Assume monthly compounding and monthly loan payments.) b. What additional factors should an engineer consider when deciding which is the best deal for her/his?
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3. Lease Analysis You have an office building with a 25,000 sf vacancy. You have two proposals: Tenant A 25,000 Starting Base Rent $48.00 NNN Size Annual Increases: Term: Free Rent: TI Allowance: 3% 10 years 4 months (Base Rent only) $100 psf Tenant B 25,000 $40.00 NNN $1.00/sf/yr 10 years None $25 psf Start Date: 10/1/2024 10/1/2024 Assume there is no parking revenue or moving allowances and that first year opex is $16.00 psf. Also pls assume commissions are $1/sf/yr for outside broker and $0.50/sf for inside broker. Using the lease analysis tool, please calculate the NPV for each. If the owner was considering selling the building in 3 years, please calculate the Capitalized Lease Value psf; assume a 7% cap rate If the owner is a long term holder, which lease would they prefer? If they prefer to sell after 3 years, which would they prefer? Why?
Problem 1 At the beginning of the current year, Red Velvet Company entered into a ten-year noncancelable lease requiring year-end payments of P1,000,000. Red Velvet's incremental borrowing rate is 12%, while the lessor's implicit interest rate, known to Red Velvet, is 10%, Present value factors for an ordinary annuity for ten periods are 6.145 at 10% and 5.650 at 12%. On the same date, Red Velvet's Company paid initial direct cost of P200,000 in negotiating and securing the leasing arrangement. Ownership of the property remains with the lessor at expiration of the lease. There is no purchase option. The lease property has an estimated economic life of 12 years. 1. What amount should be capitalized initially as cost of the right of use asset? 2. What amount should be recognized initially as lease liability? 3. What amount should be recognized as annual depreciation of the right of use asset?
PROBLEM 1: A man borrowed P3 000 to be paid after 18 months with interest at 12% compounded semi-annually and P5 000 to be paid after 36 months at 12 % compounded monthly . What single payment must he pay after 42 months at an interest rate of 16% compounded quarterly to settle the two obligations ?
None
I need ans in 15 to 20 minutes of both parts just give me the values
A 92.
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