Purchase Solution

Future value

Not what you're looking for?

Ask Custom Question

Three dealerships are wanting to merge as one company because of the tough times in the economy. They are thinking of relocating to either one of the cities, however they want to see what would be the best city to move to, based on the value of the land that each of the dealerships are on.

Dealer One currently owes 820,000 over the next 6 years at 6%

Dealer Two currently owes 450,000 over the next 8 years at 6%

Dealer Three currently owes 675,000 over the next 10 years at 8%

What is the best solution?

Purchase this Solution

Solution Summary

This provides an example of determining future value and comparing dealership worth.

Solution Preview

Hi, here is the solution...

1) Dealer one future value = 820,000(1 + 0.06)^6
= 820,000(1.06)^6

Future value = 1163185.67 in 6 years

Percentage of increase in the property value = 41.85%

Average ...

Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Basics of corporate finance

These questions will test you on your knowledge of finance.