Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cas half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% considering buying equipment from Lights, Camera, and More for $120,000 and therefore has the following paym Option 1 Option 2 Option 3 Payment Payment in One Today Year $ 120,000 60,000 0 $0 66,000 138,000 Total Payment $ 120,000 126,000 138,000 Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below.

Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cas half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% considering buying equipment from Lights, Camera, and More for $120,000 and therefore has the following paym Option 1 Option 2 Option 3 Payment Payment in One Today Year $ 120,000 60,000 0 $0 66,000 138,000 Total Payment $ 120,000 126,000 138,000 Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below.

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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Question: You have a customer who has a 620 fico score and their preferred product requires you to add 1/8th percent to the interest rate of 6 3/4% (30 year fixed rate). What is the P&I payment for this customer if they are putting 10% down on a sales price of $195,000? a. $1,152.91 b. $1,109.28 c. $1,138.29 d. $1,167.61 Please answer with explanation I will really upvote
Charles Wilson is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Charles uses a 12% discount rate. Equipment purchase and installation Annual cash flow Equipment overhaul in year 6 Equipment overhaul in year 8 Click here to view the factor table. (a) Net present value Option 1 $70,700 $27,000 $ $4,820 Option 1 Option 2 Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, eg. 1.2514 and the final answers to 0 decimal places, e.g. 59,991.) $81,280 $29,330 $6.200 $ Option 2
Answer in long hand formula please.
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You have just sold your car for $50,000, but under the sales agreement, it won't receive the $50,000 until 5 years from today. What is the present value of $50,000 to be received 5 years from today if the discount rate is 7 percent annually? a. $35,445.94 b. $35,270.25 C. $50,000.00 d. $35,649.31 e. $32,500.00
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
You have been offered a choice of: Offer One $6,000 now Offer Two $1,100 at the end of each year for 8 years at 6% Offer Three $14,000 at the end of 8 years at 6% Which offer is best?
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Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $130,000 and therefore has the following payment options: Payment Payment in One Option 1 Option 2 Option 3 Required: Today $130,000 Year $ 0 Total Payment $130,000 65,000 0 71,500 149,500 136,500 149,500 1-a. Assuming an annual discount rate of 12%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming an annual discount rate of 12%, calculate the present value and the total cost. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Payment…
C only
When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%

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