The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: what is the net present value of the cash flows assocaited with the purchase alternatives

NPV = -$149,319.44

Explanation:

Ten cars will be needed, which can be purchased at a discounted price of $18,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:

the required rate of return or discount rate for Riteway is 20%.

Cash flows:

CF₀ = -$180,000

CF₁ = -($5,100 +$3,000) = -$8,100

CF₂ = -($5,100 + $5,500) = -$10,600

CF₃ = ($9,000 X 10) - ($5,100 + $7,500) = $90,000 - $12,600 = $77,400

using an excel spreadsheet, we can calculate the NPV with r = 20%

NPV = -$180,000 + $30,680.56 = -$149,319.44

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

this conflict is person vs. society

if you need further explanations, comment below!

hope this ! < 3