Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 40, and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional credit could obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. %24 What would be the nominal cost of that credit? Do not round intermediate calculations. Round your answer to two decimal places. What would be the effective cost of that credit? Do not round intermediate calculations. Round your answer to two decimal places. % If the company could get the funds from a bank at a rate of 9%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places. Should Lancaster use bank debt or additional trade credit? -Select-

The D.J. Masson Corporation needs to raise 500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net90, and it currently pays on the 10th day and takes discounts. However, it could forgo the discounts, pay on the 90th day, and thereby obtain the needed$500,000 in the form of costly trade credit. What is the effective annual interest rate of this trade credit?

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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay​$185 for the phone and then monthly charges of​ $54 for 24 months. Carrier B wants you to pay ​$105 for the phone and monthly charges of ​$68 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.9%​APR, compounded monthly. Based on cost​ alone, which carrier should you​ choose? The EAA for plan A isThe EAA for plan B isThe EAA for plan C is

Portland Savings and Loan is considering new computersoftware, which, because of installation and training cost,will have an unusual pattern of net receipts. The expected receiptsare: $20,000 in year 1, nothing in the next yea r, $30,000 in year 3,and $50,000 in year 4. At an interest rate of 6% what is the presentvalue of these receipts?

Wontaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected to increase from $4.75 million to $5.85 million as a result. Wontaby finances short - term assets at the bank at a cost of 12 percent annually. Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.) Annual financing costN

Your firm needs to purchase 1,200 traffic cones from a supplier. One supplier demands apayment of $1,000.00 today plus $10.59 per cone payable in one year. Another supplier willask for no payment today and $11.59 per cone, also payable in one year. If the discountrate is 8.200% per year compounded annually, how much does your firm save (in terms oftoday’s dollars) by taking the less expensive offer compared to the more expensive offer?

You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $   Financed for 60 months: $

Boatler Used Cadillac Co. requires $800,000 in financing over the next two years. The firm can borrow the funds for two years at 9 per cent interest per year. Mr Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 6.75 per cent interest in the first year and 10.55 per cent interest in the second year.   a. Determine the total two-year interest cost under each plan

milgard barbers decides to lease another barbershop for a 5- year period. the has a cash price of $240,000. milgard borrowed money to purchase the shop, it would have had to pay 20% interest read the (use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. if using present and future value tables or the formula method, use factor amounts rounded to five decimal places. round your final answer to the nearest cent. (click the icon to view the future value of ) (click the icon to view the future value of an ordinary annuity table .) (click the icon to view the future value of an annuity due to table) a. what are the required payments if the lease agreement requires annual payments beginning one year from today? the required payments are $ B. what are the required payments if the lease agreement requires semiannual payments beginning six months from the required payments are. C. what are the required payments if the lease agreement…