TYPEWRITTEN ONLY PLEASE. ILL UPVOTE ONLY IF TYPEWRITTEN, COMPLETE, AND CORRECT. DONT ANSWER IF YOU ALREADY ANSWERED THIS, ILL DOWNVOTE. THANK YOU 7.Perla Santos has decided to purchase a cellular phone, but she is unsure about whichrate plan to select. The "regular" plan charges a fixed fee of $55 per month for 1,000 minutes ofairtime plus 0.33 per minute for any time over 1,000 minutes. The "executive" plan charges afixed fee of 100 per month for 1,200 minutes of airtime plus 0.25 per minute over 1,200minutes.a. If Perla expects to use the phone for 21 hours per month, which plan should she select?b. At what level of use would Perla be indifferent between the two plans?7

Requirement: Perla purchased a cellular phone but he is confused to take monthly plan. He want to…

plan to select. The "regular" plan charges a fixed fee of P55 per month for 1,000 minutes of e plus P0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fee of P100 per month for 1,200 minutes of airtime plus P0.25 per minute over 1,200 es. . If Perla expects to use the phone for 21 hours per month, which plan should she select? At what level of use would Perla be indifferent between the two plans?

plan to select. The "regular" plan charges a fixed fee of P55 per month for 1,000 minutes of e plus P0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fee of P100 per month for 1,200 minutes of airtime plus P0.25 per minute over 1,200 es. . If Perla expects to use the phone for 21 hours per month, which plan should she select? At what level of use would Perla be indifferent between the two plans?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 32P

See similar textbooks

Similar questions

You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $210 for the phone and then monthly charges of $60 for 24 months. Carrier B wants you to pay $100 for the phone and monthly charges of $74 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.2% APR, compounded monthly. Based on cost alone, which carrier should you choose? The EAA for plan A is __
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round your answer to the nearest whole number.) Plan A is optimal from zero to_________minutes. Plan C is optimal from____________minutes onward. c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used…
1. Lucy Heartfillia buy a television set from a merchant who offers P25,000 at the end of 60 days. She wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 14% simple interest. What is the required amount? 2. Determine the exact simple interest on P5,000 for the period of from Jan. 15 to Nov. 28 1992, if the interest rate is 22% 3. A mixer cost P30,000. Maintenance cost is P3,000, every two years. The device will generate revenues of 10,000, each year for 6 years after which the salvage value is expected to be P5,000.make a cash-flow diagram of a mixer in 6 years period
7. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 frames in 800 shipments in 2022, What is the Kristine's operating income for 2022?
9. Shirley Stewart is planning to buy a Toyota hybrid for $18,789 with $1,100 down and plans to finance the car. Citizens’ Financial Bank quoted a finance charge at 8.5% for 48 months; Charter One Bank quoted her a finance charge at 8% for 60 months.a. What would be her monthly payment to Citizens’ Financial Bank? Round your answer to the nearest cent. Monthly payment $ b. What would be her monthly payment to Charter One Bank? Round your answer to the nearest cent. Monthly payment $
6. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 picture frames in 1,000 shipments in 2022, what is Kristine's operating income for 2022?
8. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine anticipates making 500 shipments in 2022. How many picture frames must Kristine sell to break even in 2022?
A couch sells for $1020. Instead of paying the total amount at the time of purchase, the same couch can be bought by paying $400 down and $60 a month for 12 months. How much is saved by paying the total amount at the time of purchase? A
Suppose a furniture dealer offers to sell you a $5,000 bedroom suite on the following terms: Make no payment for six months, then pay $450 per month for 12 months. What rate of interest (APR) is being extended? A. 0.67% B. 8.09% C. 8.04%
Blush Inc., sold a kitchen appliance that costs $1,000.00 with 5-year financing to a customer who made a down payment of $510.00. What should be the size of the loan payments at the end of every month if interest of 9.00% compounded monthly is charged? You plan to save money for a down payment of $39,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 4.25% compounded monthly. How long will it take you to save the planned amount?
Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price (gross capitalized cost) of $30,000 and could borrow the money to buy from her credit union by putting $2,500 down and paying $645.84 per month for 48 months at 6 percent APR. Alternatively, she could lease the car for 48 months at $370 per month by paying a $2,500 capitalized cost reduction and a $350 disposition fee on the car, which is projected to have a residual value of $12,200 at the end of the lease. Round your answers to the nearest cent. Finance charges (borrowing the car): $ The dollar cost of leasing: $
Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price (gross capitalized cost) of $38,000 and could borrow the money to buy from her credit union by putting $3,300 down and paying $814.93 per month for 48 months at 6 percent APR. Alternatively, she could lease the car for 48 months at $535 per month by paying a $3,300 capitalized cost reduction and a $350 disposition fee on the car, which is projected to have a residual value of $11,800 at the end of the lease. Use the Run the Numbers worksheet to advise Amanda about whether she should finance or lease the car. Round your answers to the nearest cent.