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lukranit [14]
3 years ago
11

Your firm needs to invest in a new delivery truck. the life expectancy of the delivery truck is five years. you can purchase a n

ew delivery truck for an upfront cost of $200,000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4000 (paid at the end of each month). your firm can borrow at 6% apr with quarterly compounding. should you purchase the delivery truck or lease it? why?
Business
1 answer:
Rasek [7]3 years ago
3 0

First we need to calculate the monthly discount rate for the lease arrangement (EAR):

EAR = (1 + APR / k)^k - 1

= (1 + .06 / 4)^4 – 1

<span> = .06136 or 6 .14% </span>

Monthly rate = (1 + EAR)^(1/12) – 1

= (1.06136)^(1/12) - 1

= .004975 = 0.4975%

Now we can apply the formula for the PV of a constant annuity:

I = .4975

N = 60 = (5 years × 12 months/yr)

FV = 0

PMT = $4000 (lease payment)

Compute PV = 207,051.61

<span>Answer:  Therefore you should purchase the new delivery truck.</span>

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<u>Full question:</u>

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d. a theft of trade secrets.

<u>Answer:</u>

This is most likely:  trademark infringement.

<u>Explanation:</u>

Trademark infringement is described as the illegal practice of a trademark or service impression. This exercise can be in contact with goods or services and may commence to distraction, fraud, or a disagreement about the original company a commodity or service developed from.

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zheka24 [161]

Answer:

1,2,4,3

Explanation:

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$50 bill is the most liquid because it can be readily used as a medium of exchange without any conversion.

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I hope my answer helps you.

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Answer:

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Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.  

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Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.  

Vincent's business utilizes a Focus Strategy. The Cappuccino Express was made with the conviction that because of individuals' evolving schedules, comfort would be vital – giving speedy and advantageous espresso to occupied individuals.  

Prerequisite 2  

Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.  

The Cappuccino Express Critical Success Factors :  

Quality and cost of existing items  

Areas specific..near Malls , schools , workplaces and so forth.  

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Client Turnover – capacity to keep lines short, vehicles traveling through line  

Keeping Loyal clients with quality items along these lines diminishing ad costs  

Giving incredible client support  

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