31. The purchasing department for Sweets Bakery is evaluating purchase of a fleet of vehicles for $150,000 plus shipping charges of $2000. Driver training at time of purchase will total $10,000. All repairs and maintenance costs will be covered under the warranty for 2 years. In year 3, you anticipate spending $25,000 for repairs. What's the total cost of ownership? Assume the firm's borrowing rate is 5%. (Round to nearest hundredth)
31. The purchasing department for Sweets Bakery is evaluating purchase of a fleet of vehicles for $150,000 plus shipping charges of $2000. Driver training at time of purchase will total $10,000. All repairs and maintenance costs will be covered under the warranty for 2 years. In year 3, you anticipate spending $25,000 for repairs. What's the total cost of ownership? Assume the firm's borrowing rate is 5%. (Round to nearest hundredth)
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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33. The purchasing department for Sweets Bakery is evaluating purchase of a fleet of vehicles for $150,000
plus shipping charges of $2000. Driver training at time of purchase will total $10,000. All repairs and
maintenance costs will be covered under the warranty for 2 years. In year 3, you anticipate spending
$25,000 for repairs. What's the total cost of ownership? Assume the firm's borrowing rate is 5%. (Round
to nearest hundredth)
a. $187,000
b. $152,000
V
33. Gavin Rampart can't wait to buy his first car after graduation. He has to stay within his budget of $15k-
$20k as he's saving for a trip to Europe next year. The car of his dreams is being offered for $25k by the
local dealer. In negotiations, the dealer stated $21.5k is his final offer. What is true about this example?
a. Seller's reservation price is lower than the buyer's reservation price
b.
Buyer's reservation price is higher than the seller's reservation price
C.
At this point, there isn't a negotiation bargaining zone
d. Buyer's target price is within $6.5k of seller's target price
n
32. Based on the information provided by Sweets Bakery (above), what is the total landed cost for purchase
of these vehicles?
a.
$152,000
b. $185,000
$162,000
$187,000
Not applicable
$196,822
$183,552
e. $180,800
a.
b.
d.
G
d.
The Negotiator's Dilemma can best be described as:
e.
b.
d.
e.
Choosing among various options that seller offers
How much should I compete vs. how much should I cooperate with the opposition
Classifying your priorities prior to negotiations
Deciding when to walk away from the negotiations
A "zero-sum" game
purchase order is a contract when 6-7 C's are met. Some are listed below except:
a.
Parties must be at least a "Couple"
Parties must have "Consent"
C.
Parties must be "Capable"
d. Parties may "Counteroffer"
Parties have to "Comply"
e.
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