acc 640 - Homework #6

# acc 640 - Homework #6 - AC CT 64 0 HOMEWORK#6#1 129 1...

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AC CT 64 0 HOMEWORK #6 #1 1- 29: 8% 10% 12% 1. Annual payments - 30 yrs (\$42,637. 17) (\$50,918. 04) (\$59,588.9 6) 2. Annual payments - 15 yrs (\$56,078. 18) (\$56,078. 18) (\$56,078.1 8) 3. Total interest paid 30-year mortgage (\$2,007,5 41.17) 15-year mortgage (\$1,321,1 72.72) #1 1- 30: 1.UBS will lend Subaru = \$341,506 ,727.68 2. UBS will lend Subaru = \$396,233 ,180.79 #1 1- 31: a. 12% b. 16% 1. I will lend \$317,759 .04 \$276,145. 55 2. Compounded semiannually \$313,706 .19 \$270,134. 44 3. I will lend \$379,668 .67 \$349,772. 58

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#1 1- 34: NPV = \$1,479.1 3 #1 1- 36: Option 1: buy new equipment for \$36,000 Option 2: buy new equipment for \$21,000 (=36-15) and give up some old equipment NPV of old equipment = \$30,971. 87 => real price for option 2 \$51,971. 87 Chavez should just buy the new equipment for \$36,000 #1 2- 29: 1. Total fixed cost incurred 100,000. 00 Allocation to business 72,000.0 0 Allocation to engineering 148,000. 00
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acc 640 - Homework #6 - AC CT 64 0 HOMEWORK#6#1 129 1...

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