devry busn380 week 5 problem set latest 2015 december all correct answer

Problem Set 5

1. Tammy Monahan
is considering the purchase of a home entertainment center. The product
attributes and weights she plans to consider are:

portability .1

sound projection .6

warranty .3

Tammy
rated the brands as follows:

	portability	sound projection	warranty
Brand A	6	8	7
Brand B	9	6	8
Brand C	5	9	6

Using
the Consumer Buying Matrix presented in Chapter 8, conduct a quantitative
product evaluation rating for each brand. What other factors is Tammy likely to
consider when making her purchase?

2. Based on the following,
calculate the costs of buying and of leasing a motor vehicle.

Purchase Costs	Leasing Costs
Down payment $1,500	Security deposit $500
Loan payment $450 for 48 months	Lease payment $450 for 36 months
Estimated value at End of loan $4,000	End of lease charges $600
Opportunity cost interest rate: 4 percent

3. You can purchase a service
contract for all of your major appliances for $180 a year. If the appliances
are expected to last for 10 years, and you earn 5 percent on your savings, what
would be the future value of the amount you would pay for the service contract?

4. You estimate that you can
save $3,800 by selling your own home rather than using a real estate agent.
What would be the future value of that amount if invested for five years at 7 percent?

5. John Walters is comparing the
cost of credit to the cash price of an item. If John makes a $60 down payment,
and pays $34 a month for 24 months, how much more would that be than the cash
price of $695?