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 (gov/sites/dmv.nebraska.gov/files/doc/dvr/MV_Tax_Fee_Chart.pdf” class=”external” target=”_blank” rel=”noreferrer noopener”>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.
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