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
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?
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?
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