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- Solve the problem with complete solution. 9. You plan to buy a house and lot through home loan from a bank. The selling price is 1,800,000 and the bank requires a down payment of 20% of the selling price. How much is the down payment?Trulovia Manufacturing is looking to purchase a machine that will increase its efficiency in their manufacturing process. Trulovie wants to use Scenario Manager to evaluate the following four scenarios based on possible purchase prices and interest rates for a 10-year loan. What is the monthly payment for Scenario 2? Scenario Equipment Cost Loan Tern 1 9 years 2 10 years 11 years 9 years 3 $ 145,000 $ 147,500 $ 150,000 $ 155,000 Multiple Choice $116174 $1.260.41 $1,385.72 $1,448.26 Interest Rate 78 58 48 28Your firm receives an offer from the supplier who provides computer chips used to manufacture cell phones. Due to poor planning, the supplier has an excess amount of chips and is willing to sell $600,000 worth of chips for only $500,000. You already have two years' supply on hand. It would cost you $7,500 today to store the chips until your firm needs them in two years. What implied interest rate would you be earning if you purchased and store
- (a) Mak Cik Kiah is considering two alternatives for expanding her business; buying a small restaurant and renting a small restaurant. The small restaurant has an initial cost of RM80,000. Daily operating cost is expected to be RM100. The alternative of renting a small restaurant has a rental cost of RM150 per day. At 15% per year worth of money, how many days per year must the restaurant be in use if buying alternative is to be chosen. Take analysis period of 10 years. (b) A machine costs RM 20,000 and generates an annual end-of-year benefit of RM 6,000 for 8 years. If rate of return is 10% per year, determine the breakeven point in years, at which the purchase price equals the present value of the benefits received.!!!USING RATE OF RETURN (ROR) METHOD!!! A company that sells computers has proposed to a small public utility company that it purchase a small electronic computer for P1,000,000 to replace ten calculating machines and their operators. An annual service maintenance contract for the computer will be provided at a cost of P100,000 per year. One operator will be required at a salary of P96,000 per year and one programmer at a salary of P144,000 per year. The expected economical life of the computer is 10 years. The calculating machine costs P7,000 each when new, 5 years ago, and presently can be sold for P2,000 each. They have an estimated life of 8 years and an expected ultimate trade-in value of P1,000 each. Each calculating machine operator receives P84,000 per year. Fringe benefits for all labor cost 8% of annual salary. Annual maintenance costs on the calculating machines have been P500 each. Taxes and insurance on all equipment is 2% of the first cost per year. If the capital…4. You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $58 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $64 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.2%. Based on cost alone, which carrier should you choose?
- Dundar Mifflin is considering the purchase of new printer and have narrowed down the possibilities to two models which perform equally well. However, the method of paying for the two models is different. Model A requires $8,000 per year payment for the next five years. Model B requires the following payment schedule. Payment (Model 2) $10,000 9,000 Year 1 2 8,000 5,000 4 3,000 1. Which model should you buy assuming 12% rate?A Firm Considering The Installation Of An Automatic Data Processing Unit To Handle Some Of Its Accounting Operations. Machines For That Purpose May Be Purchased For P20, 000 Or Maybe Leased For P 8, 000 For The First Year And P 1, 000 Less Every Year Now And Then Until The End Of The 4th Year. If Money Is Worth 15%, Is It Advisable To Rent Or Buy The Machine?A firm considering the installation of an automatic data processing unit to handle some of its accounting operations. Machines for that purpose may be purchased for P20,000, or maybe leased for P8,000 for the first year and P1,000 less every year now and then until the end of the 4th year. If money is worth 15%, is it advisable to rent or buy the machine?
- 4. You want to buy a house that costs $620,000. You can put $55,000 down. You get a 30 year fixed-rate loan with an APR of 4.5% compounded monthly. Mor Determine the monthly payment. Show clear work. Work: Work: Answer: Find the total closing costs if they consist of a fee of $1600 and 3 points. Answer: www Suppose that you invest $4800 in an account with an APR of 6.9%, compounded continuously. Determine how much you will have after 3 years. Assume that no additional deposits are made.7. You borrow $100,000 for the purchase of an automation system in your company. The payments at 6% is $7,265 per year for 30 years. You decide that you can afford to pay $9,000 every year instead of $7,265. How long will it take to pay off this loan? Do not use excel, please work the problem out, and include cashflow diagram if possible.. You are considering the purchase of new equipment for your company and you have narrowed down the possibilities to two models which perform equally well. However, the method of paying for the two models is different. Model A requires $5,000 per year payment for the next five years. Model B requires the following payment schedule. Which model should you buy if your opportunity cost is 8 percent? Payment (Model B) $7,000 Year 1 2 6,000 5,000 3 4 4,000 3,000