Economics Homework Help

Special notes about Chapter 12 Activity:

• When filling numbers into the cash flow timeline, note the following:
  • Sales tax and down payment are only cash flows during the first year of ownership.
  • The annual payments equal the total amount of payments for each year. This is based on the amount you finance, length of the loan, and interest rate.
  • Motor Vehicle Fee can be found on the Nebraska DMV website (https://dmv.nebraska.gov/sites/dmv.nebraska.gov/files/doc/dvr/MV_Tax_Fee_Chart.pdf (Links to an external site.)).
    • This decreases every year.
  • Salvage value will only occur once, at the end of your ownership of the vehicle.
  • You do not have to keep each car for 10 years. I made the chart to be 10 years as a maximum, but you can choose to sell the car prior to 10 years of ownership.