Equuleus Car Sharing Inc is evaluating the revenue and costs of different car types over two years, including the net present value for each car type and the payment schedule and interest if purchasing on credit versus cash. Purchasing on credit is better due to higher net present values when factoring in the time value of money, and future trends in the rental car industry include increased mobility-as-a-service options.
Equuleus Car Sharing Inc is evaluating the revenue and costs of different car types over two years, including the net present value for each car type and the payment schedule and interest if purchasing on credit versus cash. Purchasing on credit is better due to higher net present values when factoring in the time value of money, and future trends in the rental car industry include increased mobility-as-a-service options.
Equuleus Car Sharing Inc is evaluating the revenue and costs of different car types over two years, including the net present value for each car type and the payment schedule and interest if purchasing on credit versus cash. Purchasing on credit is better due to higher net present values when factoring in the time value of money, and future trends in the rental car industry include increased mobility-as-a-service options.
Equuleus Car Sharing Inc is evaluating the revenue and costs of different car types over two years, including the net present value for each car type and the payment schedule and interest if purchasing on credit versus cash. Purchasing on credit is better due to higher net present values when factoring in the time value of money, and future trends in the rental car industry include increased mobility-as-a-service options.
1. What are the net present values for the two years revenue for each car type? 2. What is the payment schedule and interest paid per year? 3. Why is purchasing the cars on credit a better strategy than purchasing the cars on cash? 4. What are the future trends in the rental car industry?