VCIcies lather than buy them. A new un be leased for a down payment of $5,000 and 36 end-of-the -month payments of $699. Alternately, the car can be purchased for cash for $52,000 and a Q7 with about 40.000 miles is estimated to have resale value of $26,000 in three years from now. Should one lease or buy if opportunity cost is 5.16%APR? Show all your work. Prepare an amortization schedule for the 51st, 52nd and 53rd payments on a 15-year, 3.60% APR, $1 million mortgage loan. Payments are monthly. Show all your work. (Similar concept to problem 4). 3. .003 ( ,00) mytuow -int.Ending Month BB x i BB- Beginning Balance Monthly Payment princ. Interest Principal Balance 51 773,970.39 7,200.48 2321.914,878.57 769,091.82 3. 52 769,091.82 7,200.482,307.28 |4,893.2764,198.62 53 764,198.62/ 7,200.48 2,292.604,907.88759290.74 4,907.88 759290.74 Maxmillan Corp is planning to buy a new computer system for $800,000 with 8, useful life of six years. At the end of six years, the system will have no value Over the six years the system will save them $240,000 each year for the first three years and $120,000 each year for the last three years. a. What is the NPV of the project if Maxmillan requires a return of 16%? b. What is the IRR for this project?
VCIcies lather than buy them. A new un be leased for a down payment of $5,000 and 36 end-of-the -month payments of $699. Alternately, the car can be purchased for cash for $52,000 and a Q7 with about 40.000 miles is estimated to have resale value of $26,000 in three years from now. Should one lease or buy if opportunity cost is 5.16%APR? Show all your work. Prepare an amortization schedule for the 51st, 52nd and 53rd payments on a 15-year, 3.60% APR, $1 million mortgage loan. Payments are monthly. Show all your work. (Similar concept to problem 4). 3. .003 ( ,00) mytuow -int.Ending Month BB x i BB- Beginning Balance Monthly Payment princ. Interest Principal Balance 51 773,970.39 7,200.48 2321.914,878.57 769,091.82 3. 52 769,091.82 7,200.482,307.28 |4,893.2764,198.62 53 764,198.62/ 7,200.48 2,292.604,907.88759290.74 4,907.88 759290.74 Maxmillan Corp is planning to buy a new computer system for $800,000 with 8, useful life of six years. At the end of six years, the system will have no value Over the six years the system will save them $240,000 each year for the first three years and $120,000 each year for the last three years. a. What is the NPV of the project if Maxmillan requires a return of 16%? b. What is the IRR for this project?
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 number 7. Complete the amortization schedule.
Transcribed Image Text:VCIcies lather than buy them. A new
un be leased for a down payment of $5,000 and 36 end-of-the -month
payments of $699. Alternately, the car can be purchased for cash for $52,000
and a Q7 with about 40.000 miles is estimated to have resale value of $26,000
in three years from now. Should one lease or buy if opportunity cost is
5.16%APR? Show all your work.
Prepare an amortization schedule for the 51st, 52nd and 53rd payments on a
15-year, 3.60% APR, $1 million mortgage loan. Payments are monthly. Show
all your work. (Similar concept to problem 4).
3.
.003 ( ,00)
mytuow
-int.Ending
Month
BB x i
BB-
Beginning
Balance
Monthly
Payment
princ.
Interest
Principal
Balance
51
773,970.39
7,200.48 2321.914,878.57 769,091.82
3.
52
769,091.82 7,200.482,307.28
|4,893.2764,198.62
53
764,198.62/ 7,200.48 2,292.604,907.88759290.74
4,907.88 759290.74
Maxmillan Corp is planning to buy a new computer system for $800,000 with
8,
useful life of six years. At the end of six years, the system will have no value
Over the six years the system will save them $240,000 each year for the first
three years and $120,000 each year for the last three years.
a. What is the NPV of the project if Maxmillan requires a return of 16%?
b. What is the IRR for this project?
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