Horner Company buys a delivery van with a list price of $3,000,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Irrevocable taxes amount to $40,000 and the company paid an extra $30,000 to have a special horn installed. What should be the recorded cost of the van? a. 2,539,000 b. 2,564,500 c. 2,499,000 d. 2,569,000

Dave Krug finances a new automobile by paying $7,300 cash and agreeing to make 30 monthly payments of $460 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Monthly Payment Table Values are Based on: Present Value of Loan n i X = = + Table Factor Cash Down Payment = Present Value of Loan Cost of the Automobile

Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for the next 50 months. Nissan Motors next door does not offer free credit but will give you $9000 cash. If the rate of interest is 0.63% a month, which company is offering the better deal?   Select one: a. Nissan 9556 Cash b. Nissan- 9000 Cash c. Toyota- 9000 cash d. Toyota- 9556 Cash

Foxtrot Corporation is purchasing a new Ford Transit delivery van for $24,600.  Its lender requires a maximum loan to value ratio of 80% on the purchase price of the vehicle.  The term of the loan is 5 years.  The interest rate is 5% APR.  The loan is a closed end credit loan.  There is no trade-in.  Sales tax is 7%.  Documentation fee is $275.    a. What is the total cost of the delivery van including purchase price, sales tax, and documentation fee; and how much is classified as an asset on the balance sheet and how much is classified as an expense on the income statement? b. How much cash must Foxtrot Corporation have to make the down payment? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?

Dave Krug finances a new automobile by paying $6,800 cash and agreeing to make 40 monthly payments of $580 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1. EV of $1. PVA of $1. and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment 580 Table Values are based on: Present Value of Loan n = Table Factor $ 40 12% Cash Down Payment 6,800 - Present Value of Loan Cost of the Automobile

1. You are planning on leasing a drying oven for your production line. The oven lease terms involve an initial payment of $1000 when the oven is delivered, an annual payment of $2000 for seven years, and a final recovery payment of $1000 when the leasing company takes the oven back at the end of the lease. Your corporate cost of money is 4% and the leasing company is responsible for all maintenance on the oven. What is the equivalent (NPV) value of this cashflow today? 1.a The oven you are leasing (from question 1), is expected to generate a cost savings of $5000 per year over the older oven you are currently using. What is the equivalent NPV value of the cashflow when these savings are included?

Find the selling price of an item which has a cost price of $15.61 and is sold at a loss of 371/2 %  Ans $9.76 The government borrowed a certain amount of money to build a new bridge. It pays interest at a rate of 12%. If the yearly repayments are $320,000, calculate the amount borrowed.    A potter finds he takes 5 hours to produce 8 vases. If he continues to work at the same rate , find: How long it will take him to make 20 vases    How complete vases can be made in 24 hours Two brothers aged 15 and 10 years are given $3000 to be divided between them in the ratio of their ages. How much does each receive?    If the cost of an article is $104 and its selling price is $120. Find the percentage profit.

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