After deciding to buy a new car, you can either lease the car or purchase it on a four-year loan. the car you wish to buy costs $40,000. the dealer has a special leasing arrangement where you pay $109 today and $509 per month for the next four years. if you purchase the car, you will pay it off in monthly payments over the next four years at an apr of 7 percent. you believe you will be able to sell the car for $28,000 in four years. a. what is the present value of leasing the car? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. what is the present value of purchasing the car? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. what break-even resale price in four years would make you indifferent between buying and leasing? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u. s. parent on bank deposits held in london d. interest received by a u. s. parent on a loan to a subsidiary in mexico e. principal repayment received by u. s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u. s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Why do police officers get paid less than professional baseball players?