Solution Question 3_25 No Discounting - Year 1 ($5,500.00)...

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Data New Car Purchase Price $15,000.00 Available Cash $5,500.00 Loan Amount $9,500.00 Monthly Payment ($201.85) Yearly Payment ($2,422.16) Maintentance Cost Year 1 ($100.00) Maintentance Cost Year 2 ($300.00) Maintentance Cost Year 3 ($300.00) Salvage Value $3,626.00 Yearly Interest Rate 10.00% Montly Interest Rate 0.83%
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Data Used Car Purchase Price $5,500.00 Available Cash $5,500.00 Loan Amount $0.00 Fixed Maintentance Cost Year 1 ($150.00) Fixed Maintentance Cost Year 2 ($200.00) Amount Probability Unknown Maintenance Cost Each Year ($500.00) 20.00% ($1,500.00) 60.00% ($2,500.00) 20.00% Salvage Value $2,000.00
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#ADDIN? Chance ($5,500.00) #ADDIN? 100.0% Chance ($2,522.16) #ADDIN? 100.0% ($2,722.16) Decision #ADDIN? 20.0% ($700.00) 20.0% Year 2 ($650.00) #ADDIN? 60.0% ($1,700.00) 20.0% ($2,700.00) #ADDIN?
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Unformatted text preview: Year 1 ($5,500.00) #ADDIN? 60.0% Reference ($1,650.00) #ADDIN? 20.0% Reference ($2,650.00) #ADDIN? Car Decision New Car Used Car Year 1 Year 2 Low Medium High Low Medium High Chance #ADDIN? 100.0% #ADDIN? $903.84 #ADDIN? 20.0% #ADDIN? $1,500.00 #ADDIN? Year 3 #ADDIN? 60.0% #ADDIN? $500.00 #ADDIN? 20.0% #ADDIN? ($500.00) #ADDIN? Reference #ADDIN? Reference #ADDIN? Year 3 Low Medium High 20.0% Reference ($700.00) #ADDIN? Chance #ADDIN? 60.0% Reference ($1,700.00) #ADDIN? 20.0% Reference ($2,700.00) #ADDIN? Year 2 Used Car Low Medium High 20.0% #ADDIN? $1,500.00 #ADDIN? Year 3 #ADDIN? 60.0% #ADDIN? $500.00 #ADDIN? 20.0% #ADDIN? ($500.00) #ADDIN? Year 3 Used Car Low Medium High...
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This note was uploaded on 04/04/2012 for the course CIVIL ENGI CIV 125 taught by Professor Prof.chang during the Summer '11 term at International School of Management, New York.

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Solution Question 3_25 No Discounting - Year 1 ($5,500.00)...

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