Now let's assume that the pressure washer cost $400 had to be replaced every 10 years. So your decision is to rent each year at $80, or spend $400 now, which would save you $80 per year for 10 years ($800 gross dollars). Assume the appropriate discount rate (interest rate or i) is 8%. Calculate the PV of the savings (Begin mode) and compare to the cost of buying,

You wants to open a saving account.which account will grow his money the most

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Because the demand for wheat tends to be inelastic. true or false