calculate the required reImagine that you own a 5-year old car that was just paid off and refurbished for $4,400. On your next trip, the transmission is severely damaged and must be replaced for $4,000. Assume a life span for your 5-year old vehicle of 10 years (5 years left). In lieu of spending $4,000, you can get a trade-in value of $12,000 (in its current broken condition) towards a new car of $28,000 (including all fees and taxes). Assume a life span for the new vehicle of 10 years.
Show how you would analyze your choices using CFDs. What Planning Horizon would you use? What expenses would you consider? Show CFDs for each alternative and use appropriate symbols – do NOT solve the problem but explain your approach.turn on asset A having a beta of 0.3 and asset B having a beta of 1.2.