You go to the car dealer to have some service done on your car. Unfortunately, they...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You go to the car dealer to have some service done on your car. Unfortunately, they find a lot of problems with the car. Today you will have to pay $2,000 to get the car fixed. Based on your estimate you will also have to pay $3,000 per year for 6 years to keep the car on the road starting exactly three year from today. The discount rate is 4.2% per year. How much are the total repair costs in today's dollars? O a. $14,390.36 O b. $15,953.29 O C. $16,390.36 Od. $16,450.28 e. None of above You go to the car dealer to have some service done on your car. Unfortunately, they find a lot of problems with the car. Today you will have to pay $2,000 to get the car fixed. Based on your estimate you will also have to pay $3,000 per year for 6 years to keep the car on the road starting exactly three year from today. The discount rate is 4.2% per year. How much are the total repair costs in today's dollars? O a. $14,390.36 O b. $15,953.29 O C. $16,390.36 Od. $16,450.28 e. None of above
Expert Answer:
Answer rating: 100% (QA)
Option C 1639036 PV of repair cost C AB Years Repair cost P... View the full answer
Related Book For
Fundamentals of Law Office Management
ISBN: 978-1133280842
5th edition
Authors: Pamela Everett Nollkamper
Posted Date:
Students also viewed these general management questions
-
How much are the total quarterly payments paid by Erich Shultz, age 40, and his wife Demetria, age 35, if each has a 20-year level term insurance policy for $300,000 and both use tobacco?
-
You go to the dentist twice a year to get your teeth cleaned. You heard that your dentist had devised a new method of charging for the service, but you were surprised to receive the bill (appearing...
-
Carter Co. has a value of $80 million. Buleigh is otherwise identical to Carter Co., but has $32 million in debt. Suppose that both firms are growing at a rate of 5%, the corporate tax rate is 38%,...
-
(a) What does probability convey about an events occurence in a sample? (b) What is the probability of a random event based on?
-
The Internet of Things Comes to Sports 1. Why did NFL equip its players with RFID tags? 2. What factors contributed to the success of the IoT initiative at the NFL? 3. What are the benefits and...
-
Suppose Frazier Corporation has receivables of \($63,000\), furniture totaling \($198,000\), and cash of \($45,000\). The business has a \($108,000\) note payable and owes \($84,000\) on account. How...
-
During the current year, Irene, a married individual who files a joint return, reports the following items of income and loss: Salary .. $130,000 Activity X (passive) . 10,000 Activity Y (rental real...
-
The new project is likely to give a rate of return of 14% before taxes .An investment company is willing to finance the project through a private placement of 5 crore in the form of 10% p.a. interest...
-
Garden Glory Project Questions Assume that Garden Glory designs a database with the following tables: OWNER (OwnerID, OwnerName, OwnerEmail, OwnerType) OWNED_PROPERTY (PropertyID, PropertyName,...
-
On January 1, a company agrees to pay $28,000 in four years. If the annual interest rate is 5%, determine how much cash the company can borrow with this agreement. (Use appropriate factor(s) from...
-
Example of grounded theory in relation to general psychology. Give an example that could be used in the field of psychology and how a grounded theory would fit into that example.
-
Partial adjusted trial balance for Metlock, Inc. at December 31, 2022, includes the following accounts: Retained Earnings $17,300. Dividends $4,800, Service Revenue $37,300, Salaries and Wages...
-
Consider a non-rotating space station in the shape of a long thin uniform rod of mass 5.37 x 10^6 kg and length 1130 meters. Rocket motors on both ends of the rod are ignited, applying a constant...
-
Why thin film on a glass surface can remove completely reflections at certain light wavelength? Magnesium fluoride (n = 1.38) is used as coating on nonreflecting glass. How thin coating is enough to...
-
A 5-year Treasury bond has a 4.9% yield. A 10-year Treasury bond yields 6.45%, and a 10-year corporate bond yields E inflation will average 3% over the next 10 years (IP103%). Assume that there is no...
-
If Neon Lights, LLC has gross receipts of $25 million for the taxable year, they will not be considered an SSTB if less than what percentage of their gross receipts are attributable to an SSTB...
-
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
-
Describe how the American Association of Law Librarians recommends that a person cite information obtained from the Internet.
-
What is the unauthorized practice of law?
-
What are the nine things that indicate a lack of commitment to a clients case?
-
How does the auditors professional duty of confidence affect disclosures to third parties?
-
When can auditors disclose unlawful acts to the police?
-
What should auditors do if they discover an unlawful act?
Study smarter with the SolutionInn App