All categories

2 years ago

Specifics

Business

1 answer:

bogdanovich [222]2 years ago

3 0

The cost of buying and leasing is: A. buy: 14720; lease: 14996.

<h3>Cost of buying and leasing</h3>

1. Cost of Buying:

Total loan payment= 385× 48 months

Total loan payment= $18,480

Cost of buying = Down Payment + Loan payment + ( Opportunity cost ×Down payment× X term in years ) - Ending loan estimated value

Cost of buying= 2,000 +$18,480 + (2000 × 0. 03× 4 years ) - 6,000

Cost of buying= 2,000 + $18,480+240-6,000

Cost of buying= 14,720

2. Leasing:

Total Lease payment=295× 48 months

Total lease payment= $14,160

Leasing= Total lease payment + End of lease charges + ( Security deposit × Opportunity cost× X term in years))

Leasing= $14,160+ 800 + (300 ×0.03×4)

Leasing= $14,160+ 800 +36

Leasing=14996

Therefore the cost of buying and leasing is: A. buy: 14720; lease: 14996.

Learn more about Cost of Buying and leasing here: brainly.com/question/15694660

brainly.com/question/15863500

#SPJ1

You might be interested in

One of the draw backs of the profitablity index as a criteria for judging whether to accept a capital investment project is that

Naya [18.7K]

Answer:

It might lead to over-optimistic projections

Explanation:

In simple words, the problem with using profitability index as the index criteria lies with the procedure of estimating it. In order to consider the business situation, the organisational finance group requires to settle with the corporation supervisors.

Leadership may be too enthusiastic about their assignment, so forecasts for cash flow may be too substantial. Consequently, in predicting the profitability index, there may be an uptrend prejudice.

3 0

3 years ago

A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. Thi

Mrrafil [7]

Answer:

a. 9%

b. Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits

d. Rate of return of economy = 7%

Explanation:

a. Percentage rate of return = Earning ÷ Investment by founders × 100

= $18 ÷ $200 × 100

= 9%

b. Company rate of profit - Rate of profit of economy

= 9% - 7%

= 2% > 0

Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.

d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.

Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%

4 0

3 years ago

United Disposal, Inc., operates a hazardous waste disposal site that accepts waste transported by Ace Trucking Company from Gene

rosijanka [135]

Answer:

United Disposal, General Manufacturing Corporation, Ace Trucking Company, and/or Investment Properties.

Explanation:

When the EPA cleans up site, it generally uses money from its superfund and it is allowed to recover the money from the entity that caused the pollution (either directly or indirectly), the owner of the premise or the user of the premise. I.e. they can recover the funds from anyone involved. The EPA will try to recover the funds based on several aspects including the financial position of the entities involved. E.g. if United Disposal, Ace Trucking Company and General Manufacturing Company filed for bankruptcy, the EPA will recover the funds from Investiture Properties even if they were not responsible for the pollution.

8 0

2 years ago

Ollie Company experienced the following events during its first-year operations: 1. Acquired $72,000 cash from the issue of comm

SCORPION-xisa [38]

Answer and Explanation:

The preparation of the statement of changes in stockholders' equity is presented below:

Ollie Company

Statement of changes in stockholders' equity

Beginning common stock $0

Add: Common stock issuance $72,000

Ending common stock $72,000

Beginning retained earning $0

Add: Net income $16,000 ($59,000 - $43,000)

Less: cash Dividend paid -$7,000

Ending retained earning $9,000

Total stockholder equity $81,000 ($72,000 + $9,000)

4 0

3 years ago

If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of secur

Lady_Fox [76]

If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the "stock's standard deviation."

<h3>What is standard deviation?</h3>

The standard deviation would be a statistic that calculates as square root of a variance and indicates the dispersion of the a dataset compared to its mean.

Its standard deviation is determined as the square root of the variance by determining the deviation of each data point from the mean.

Some key features regarding the standard deviation, are-

The standard deviation of a dataset reflects its dispersion compared to its mean.
A square root of a variance is used to compute it.
In finance, standard deviation is frequently employed as a measurement of an asset's relative riskiness.
The volatile stock has a large standard deviation, whereas a description stock has a low deviation.
The standard deviation, on the other hand, assesses all ambiguity as risk, especially when it is in the investor's advantage, such as above-average profits.

To know more about standard deviation, here

brainly.com/question/475676

#SPJ4

7 0

1 year ago