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Business, 05.11.2020 19:10 edjiejwi

Alejandra wants to buy a new Ford Truck She has negotiated a sales price of $36,585 and she has a $5,000 down payment. She is eligible for the full $10,000 cash rebate. Her bank has pre-approved her for a 72-month car loan at 3.24%. Assuming Alejandra wants the cheapest overall price, which option should she take? Should she take the 0% financing offer for 66 months from the dealer, or should she borrow the money from her bank at 3.24% to pay off the dealer and receive the $10,000 cash rebate?
N Explanation:
I/Y
PV
PMT
FV
Now suppose she is only able to get $2,000 cash back (with the 3.24% financing from her bank). Does this change her decision?
N Explanation:
I/Y
PV
PMT
FV
Suppose Alejandra is able to arrange financing for 8.69% instead of 3.24%. The cash rebate remains at $10,000. Does this change her decision?
N Explanation:
I/Y
PV
PMT
FV

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