A company is bidding to buy a fleet of lorries for £ 15,600,000. Payment on delivery 1,000,000 TL in advance is realized as 1,297,200 TL for each subsequent month. Another seller makes the same delivery by applying 1% interest per month to the outstanding amount he suggests. Which offer is more advantageous?
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A company is bidding to buy a fleet of lorries for £ 15,600,000. Payment on delivery 1,000,000 TL in advance is realized as 1,297,200 TL for each subsequent month. Another seller makes the same delivery by applying 1% interest per month to the outstanding amount he suggests. Which offer is more advantageous?
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- A firm sells the same material with two separate payment plans.1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10.837.000 TL, and an interim payment of 12 million TL is required at the end of the 6th month.2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7.965.000 TL and an interim payment of 36 million TL is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied.A firm sells the same material with two separate payment plans. 1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10 837 000 TL, and an interim payment of 12 million TL is required at the end of the 6th month. 2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7 965 000 TL and an interim payment of 36 million TL is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied.A firm sells the same material with two separate payment plans.1. According to the 1st payment plan, the payment period is 12 months, each monthlypayment is 10 837 000 TL, and an interim payment of 12 million TL is required at the end of the 6th month.2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7 965 000 TL and an interim payment of 36 million TL is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied
- Moonlight Industries just signed a sales contract with a new customer. JK will receive annual payments in the amount of $50,000, $96,000, $123,000, and $138,000 at the end of Years 1 to 4, respectively. What is this contract worth at the end of Year 4 if the firm earns 3.75 percent on its savings? Can the excel and calculator solution be provided?Your storage firm has been offered $95,700 in one year to store some goods for one year. Assume your costs are $95,200, payable immediately, and the cost of capital is 8.2%. Should you take the contract? The NPV will be $ (Round to the nearest cent.) Should you take the contract? (Select from the drop-down menu.) The contract be taken.Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $4.94 million per year. Your upfront setup costs to be ready to produce the part would be $7.97 million. Your discount rate for this contract is 8.1%. What is the IRR? The IRR is ____% (Round to two decimal places)
- Your storage firm has been offered $95,400 in one year to store some goods for one year. Assume your costs are $96,700, payable immediately, and the cost of capital is 8.4%. Should you take the contract? The NPV Will Be $______ (Round to the nearest cent)* A firm sells the same material with two separate payment plans. 1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10 837 000 TL, and an interim payment(Ara Ödeme) of 12 million TL is required at the end of the 6th month. 2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7 965 000 TL and an interim payment (Ara Ödeme) of 36 million TL is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied.A company is signing a contract to buy a number of components for a £10 unit price. These can be resold after one year at a £12 unit price if demand turns out to be strong, and at a £8 price if demand is weak. Market conditions(strong or weak demand) will only observed in 3 months; the company currently assigns equal chances to either occurence, Assume also that the order can be cancelled within 6 months without penalty and that the relevant discount rate is 10%. Which one of the following statement is the most accurate? A. The company should not sign the contract because the project has a negative NPV B. The company should sign the contract, as there are good chances that it might be able to sell the sourced components at a profit C. The company should be sign the contract,since it should take into account the value of the option to abandon the project D. The company is indifferent, since the expected unit price across the two states allows it to just break even
- British Mobile placed an order for mobiles from Oman Mobile for which it has to pay in USD. The payment has to be made after 1 year. The price of each mobile is 100 USD As the finance manager of British Mobile you booked a forward contract today. GBP/ USD spot and forward rates are shown below Question: How much does British Mobile have to pay in GBP for each mobile? Question: Why book a forward contract ? Question: Don't you think it is better to book an option contract instead of a forward contractYour factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be$5.01milion per year. Your upfront selup costs to be ready to produce the part would be$7.97million. Your discount rate for this contract is8.1%. a. What is the IRR? b. The NPV is$4.92million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?A firm sells the same material with two separate payment plans. 1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10 837 000 $, and an interim payment of 12 million $ is required at the end of the 6th month. 2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7 965 000 $ and an interim payment of 36 million $ is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied