Daniela has a choice in how to buy a new car that costs $37,800:
1) she could buy the car outright, paying the cost up front.
2) she could make payments at the end of each month of $880 for 4 years at 5.46% compounded monthly.
What is the present value of each option?
Option 1 present value $
Option 2 present value $
Which option should Daniela take based on the Discounted Cash Flow Method?
1) she could buy the car outright, paying the cost up front.
2) she could make payments at the end of each month of $880 for 4 years at 5.46% compounded monthly.
What is the present value of each option?
Option 1 present value $
Option 2 present value $
Which option should Daniela take based on the Discounted Cash Flow Method?