277 Words2 Pages

1. Tammy Monahan is considering the purchase of a home entertainment center. The product attributes and weights she plans to consider are: portability .1 sound projection .6 warranty .3
Tammy rated the brands as follows: portability sound projection warranty
Brand A 6 8 7
Brand B 9 6 8
Brand C 5 9 6
Using the Consumer Buying Matrix presented in Chapter 8, conduct a quantitative product evaluation rating for each brand. What other factors is Tammy likely to consider when making her purchase?
2. Based on the following, calculate the costs of buying and of leasing a motor vehicle.
Purchase Costs Leasing Costs
Down payment $1,500 Security deposit $500
Loan payment $450 for 48 months Lease payment $450 for 36 months
Estimated value at
End of loan $4,000 End of lease charges $600
Opportunity cost interest rate: 4 percent
3. You can purchase a service contract for all of your major appliances for $180 a year. If the appliances are expected to last for 10 years, and you earn 5 percent on your savings, what would be the future value of the amount you would pay for the service contract?
4. You estimate that you can save $3,800 by selling your own home rather than using a real estate agent. What would be the future value of that amount if invested for five years at 7 percent?
5. John Walters is comparing the cost of credit to the cash price of an item. If John makes a $60 down payment, and pays $34 a month for 24 months, how much more would that be than the cash price of $695?
$71.00

Related

## Math 103 Final Project

857 Words | 4 Pages2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.

## Acct 311 Case Study

2449 Words | 10 PagesA company leases a machine on January 1, Year One for five years which call for annual payments of $4,000 for the first year and then $10,000 per year after that. The present value of these payments based on a reasonable interest rate of 10 percent is assumed to be $38,000. This lease

## Acct 551 Quiz

569 Words | 3 PagesWhat amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants? (Points : 4) $28,800 $33,600 $41,600 $40,000 3. (TCO A) On January 1, 2010, Trent Company granted Dick Williams, an employee, an option to buy 100 shares of Trent Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $900. Williams exercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010.

## Evon Llc Company

1117 Words | 5 PagesIn year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. Using the corporate tax rate table, determine how much tax Willow Corp. will pay for year 3. Answer: $4,500. Description (1) Year 3 taxable income $100,000 (2) Year 1 NOL carryforward ($30,000) (3) Year 2 NOL carryforward ($40,000) (4) Taxable income reported 30,000 (1) - (2) -

## Week 5 Problem Set - Personal Financial Planning

397 Words | 2 PagesPersonal Financial Planning Problem Set 5 1. Tammy Monahan is considering the purchase of a home entertainment center. The product attributes and weights she plans to consider are: Portability: .1 Sound projection: .6 Warranty: .3 Tammy rated the brands as follows: | portability | sound projection | warranty | Brand A | 6 | 8 | 7 | Brand B | 9 | 6 | 8 | Brand C | 5 | 9 | 6 | Using the Consumer Buying Matrix presented in Chapter 8, conduct a quantitative product evaluation rating for each brand. What other factors is Tammy likely to consider when making her purchase? 0.1/0.6/0.8/0.7 0.6/5.4/3.6/4.8 0.3/1.5/2.7/1.8 Totals: 1.0/7.5/7.1/7.3 Brand B is best choice when considering these factors.

## Tax Problems Ch 11 Solutions Manual

4814 Words | 20 PagesChapter 11 Investments SOLUTIONS MANUAL 49. [LO 1] Dana intends to invest $30,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. Assuming Dana’s federal marginal rate is 25 percent and her marginal state rate is 5 percent which of the two options should she choose? If she were to move to another state where her marginal state rate would be 10 percent, would her choice be any different?

## Acct 311 Final Paper

3190 Words | 13 PagesBecause this property is normally sold, the lessee (Royal) must report it as a sales-type lease. 3. If the machine has an expected life of five years, then both parties must report the transaction as a capital lease. 4. If the lease contract gives Royal the option to buy the machine at the end of four years, then both parties must report the transaction as a capital lease 28.

## Hw Week 4

321 Words | 2 PagesThe corporation will have to recognize a gain of $2,000. c. What, if any, changes if Susan received another 10 percent stock interest for the car? Susan will have to recognize a gain of $2,000. 62. A corporation has income of $62,000 from operations and a net long-term capital loss of $5,000.

## Busn602

910 Words | 4 PagesBUSN602 Midterm Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain

## Scitronics - Assessing a Company's Financial Health

2191 Words | 9 PagesSciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008. Its return on equity was 18.67% an improvement from the 8.2% earned in 2005. Activity Ratios: How well does the company employ its assets? 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $ 244,000 into $ 159,000.

### Math 103 Final Project

857 Words | 4 Pages### Acct 311 Case Study

2449 Words | 10 Pages### Acct 551 Quiz

569 Words | 3 Pages### Evon Llc Company

1117 Words | 5 Pages### Week 5 Problem Set - Personal Financial Planning

397 Words | 2 Pages### Tax Problems Ch 11 Solutions Manual

4814 Words | 20 Pages### Acct 311 Final Paper

3190 Words | 13 Pages### Hw Week 4

321 Words | 2 Pages### Busn602

910 Words | 4 Pages### Scitronics - Assessing a Company's Financial Health

2191 Words | 9 Pages