Question: Please answer all 4 question, thank you Question 1 XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck

Please answer all 4 question, thank you
Question 1

XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $43,443. The dealer allows XYZ to trade-in the old truck for $6,711. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3%:

How much is the monthly payment?

Question 2
If XYZ can only pay $741 monthly, and the dealer does not accept trade-in, given 3% interest rate, how much of the new pick-up truck can XYZ afford?
Question 3

On second thoughts, XYZ decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost $2,428. After the retrofit, the annual fuel and maintenance cost will be $719 for the first year and increases by $139 each year.

XYZs minimum attractive rate of return is 4%. If XYZ will get rid of the old truck in six years, what is the total present cost of retrofit?

Question 4
Without the retrofit, the annual fuel and maintenance cost will be $2,017 for the first year and increases at a rate of 6% each year. Given XYZs minimum attractive rate of return is still 4%. If XYZ will get rid of the old truck in six years, what is the total present cost of not retrofit?


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