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(Solved): \( \mathrm{XYZ} \) Construction Inc. wants to purchase a new pick-up truck. The price for the new t ...
\( \mathrm{XYZ} \) Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is \( \$ 46,463 \). The dealer allows \( X Y Z \) to trade-in the old truck for \( \$ 5,533 \). \( X Y Z \) 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 2 pts If \( \mathrm{XYZ} \) can only pay \( \$ 820 \) monthly, and the dealer does not accept trade-in, given \( 3 \% \) interest rate, how much of the new pick-up truck \( \operatorname{can} X Y Z \) afford? Question 3 5 pts On second thoughts, XYZ decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost \( \$ 2.289 \). After the retrofit, the annual fuel and
On second thoughts, \( X Y Z \) decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost \( \$ 2,289 \). After the retrofit, the annual fuel and maintenance cost will be \( \$ 615 \) for the first year and increases by \( \$ 120 \) each year. \( X Y Z \) 's minimum attractive rate of return is \( 4 \% \). If \( X Y Z \) will get rid of the old truck in six years, what is the total present cost of retrofit? Question 4 5 pts Without the retrofit, the annual fuel and maintenance cost will be \( \$ 2,168 \) for the first year and increases at a rate of \( 6 \% \) each year. If \( X Y Z \) will get rid of the old truck in six years, what is the total present cost of not retrofit?