1.  Assume that you are the finance officer for an equipment dealer. The owner has asked you to determine the markup needed and a rebate policy for the following financing packages. Assume that you need to net (today) $500,000 on a particular machine for the dealership to break even and that market interest rates are 7% AR. All payment plans are to involve monthly payments. 
2. 
   
3. Determine the list markup needed in each case to break even.

a. " No payments for 12 months, 48 month financing at a 0% AR."
b. " 1% AR financing for 5 years (60 months).

Answer rating: 100% (QA)

a No payments for 12 months 48month financing at a 0 AR In this case there are no payments for the f... View the full answer