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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This note was uploaded on 04/07/2011 for the course ACCT 640 taught by Professor N/a during the Spring '11 term at Davenport.

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

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