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For questions 1-10: H2X Outdoor Solutions LLC is purchasing a new Ford FS50 XI dump truck for $55,000. Its lender requires a maximum loan to value ratio of 90% on just the purchase price of the dump truck The term of the loan is 5 years. The interest rate is 5%. The loan is a closed end credit loan. There is no trade-in. Sales tax is 7% (assume deductible in the year incurred) Documentation fee is $250 (for this assignment do not include in the sales tax calculation; assume deductible in the year incurred). Note: there are many ways to make loan calculations and use the one that you like but the following is a good choice: https://e-farmcredit.com/calculator 1. What is the total cost of the dump truck including purchase price, sales tax, and documentation fee? 2. How much of the total cost is CAPEX? 3. How much of the total cost is OPEX? 4. How much cash must H2X have to make the down payment? 5. How much is the loan amount? 6. What is the monthly payment?

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Answer #1

1. What is the total cost of the dump truck including purchase price, sale tax and documentation fees?

Answer : Total Cost is $59100 (55000+3850+250)

2. How much the total cost of CAPEX.

Answer : $55250

3. How much the total cost of OPEX.

Answer : Nil

4.How much cash must HX have to make the down payment

Answer : $5885 ( 58850*10%= 5885)

5. How much is is the loan amount

Answer : $59970.93

6. What is the monthly payment.

Answer :- $999.51

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