1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vinil7 [7]
3 years ago
6

Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option b

ut is not sure how to compare the alternatives. Purchasing a new vehicle will cost $33,500, and Harold expects to spend about $1,200 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $13,300. Alternatively, Harold could lease the same vehicle for five years at a cost of $4,355 per year, including maintenance. Assume a discount rate of 12 percent. Required: 1. Calculate the net present value of Harold’s options. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places. Do not round intermediate calculations.) 2. Advise Harold about which option he should choose. Lease Option Purchase Option
Business
1 answer:
Hoochie [10]3 years ago
5 0

Answer :

Net present value = -$30,284.90

Net present value = -$15,699.78

Explanation :

As per the data given in the question,

Particulars                 Amount     Factor              Purchase

Cost of new vehicle -$33,500    1                    -$33,500.00

Annual Maintenance -$1,200   3.605             -$4,326.00

Less : Salvage value    $13,300 0.567              $7,541.10

Net Present value                                             -$30,284.90

Particulars                  Amount       Factor           Purchase

Cost of new vehicle       $0                1                      $-

Annual Maintenance -$4,355       3.605          -$15,699.78

Less : Salvage value        $0             0.567              $-

Net Present value                                               -$15,699.78

We simply multiplied the amount with the factor so that the purchase amount could come

You might be interested in
Costello Corporation reported pretax book income of $500,900. During the current year, the reserve for bad debts increased by $6
raketka [301]

Answer:

Deferred income tax expense = $7,161

Explanation:

Given:

Bed debts increase = $6,800

Depericiation increase = $40,900

Tax-exempt life insurance = $3,450

Computation:

Assume tax rate = 21%

Taxable difference = 40,900 - 6,800

Taxable difference = 34,100

Deferred income tax expense = 34,100 × 21%

Deferred income tax expense = $7,161

6 0
3 years ago
what is a patent registration, design registration, NDA( non disclosure agreement, and a trademark registration
nata0808 [166]

Answer:

find all answers in the explanation below

Explanation:

Patent Registration: This can be defined as the registration of the protection an invention to ensure that no one can make a copy of the said invention elsewhere. A patent registration is usually done after obtaining a patent right. A patent is the protection of an invention or idea to ensure that it is not produced or sold, etc by another individual. Patents are usually issued by the Patent and Trademark Office

Design Registration: This is the registration of a design such that it cannot be used elsewhere by another person. The registration of a design helps to protect the external look of an invention or product to ensure it is unusable anywhere else.

Non disclosure agreement: This is a legal contract that exists between two parties in which confidential messages, information, etc exchanged between them cannot be revealed to a third party. A non disclosure agreement is also called a confidential agreement or secrecy agreement or confidential disclosure agreement, etc among other names.

Trademark Registration: This can be defined as the registration of the protection of a company's mode of identity with its customers. Trademarks range from signs to symbols, to words, etc.

Cheers.  

8 0
3 years ago
When Jill was asked, she chose cars over stomach cancer as the cause of more U.S. deaths per year. When asked why she chose the
SOVA2 [1]

Answer:

C. availability.

Explanation:

The availability bias and misinterpretation is the result of increased frequency and omnipresence of information that does not reflect its importance or correctness.

Here, Jill is clouded by how much car deaths are propagated in the media, so she fails to realize the correct answer, despite the fact that stomach cancer could seem rational in her mind.

6 0
3 years ago
A domestic company creates a strategic partnership with a foreign company in order to enter a foreign market. Both companies sha
Masja [62]

When two companies come together strategically to operate is called a joint venture.

<h3>What is a Joint Venture?</h3>

A Joint simply put is when two separate entities or business agree to share resources with the aim of archeiving similar or one objective.

Mostly, this is carried out when a  company intend to enter a foreign market.

Learn more about joint venture here:

brainly.com/question/9389546

6 0
2 years ago
A successful organization can involve its employees in the control system in all of the following ways EXCEPT
stiks02 [169]

D) regulating its behavior; involving employees in the control system is good for an organization but except in regulating its behavior.

More about Organizational Control System:

Organizational control system is crucial to understanding how the organization is doing, spotting problem areas, and then taking the necessary action.

There are three basic types of control systems available to executives:

Output control : The focus of output control is on quantifiable results for the organization. In output control, executives must choose the acceptable performance threshold, inform staff members of the general expectations, monitor whether performance metrics are in line with targets, and make any necessary adjustments.

Behavioral control: In contrast to output control, which focuses on results, behavioral control typically focuses on controlling the activities. Particularly, special procedures and regulations are utilized to shape or impose behavior.

Clan control: Clan control is a non-standardized type of control. It depends on shared traditions, expectations, values, and norms.

Complete Question:

A successful organization can involve its employees in the control system in all of the following ways EXCEPT

A) setting realistic performance results.

B) emphasizing development and improvement.

C) encouraging good communication and mutual participation.

D) regulating its behavior.

E) presenting data in understandable terms.

Learn more about Control System here:

brainly.com/question/26695325

#SPJ1

8 0
1 year ago
Other questions:
  • Sung owns a dog-walking business that she started in high school. Her first goal was to earn money after school and supplement h
    13·1 answer
  • ________ said, "Develop your people to do their jobs better than you can. Transfer your skills to them. This is exciting but it
    11·1 answer
  • The motivating force behind an increase in supply in a long-run adjustment to equilibrium is
    6·1 answer
  • When her roommate asked connie why she wasn't studying for a big test scheduled for the next day, connie replied, it doesn't mak
    12·1 answer
  • The action by Massachusetts farmers who were protesting debt collections, foreclosures, and taxes and which raised concern among
    8·2 answers
  • The closing stage in the selling process involves obtaining a purchase commitment from the prospect. This stage is the most impo
    10·1 answer
  • Data that are observed or collected directly from respondents are called: a. primary data. b. direct samples. c. secondary data.
    11·1 answer
  • Cash Flows From Operating Activities Add to Net Income Deduct from Net Income Cash Flows From Investing Activities Cash Flows Fr
    13·1 answer
  • Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussi
    15·1 answer
  • On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!