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
zimovet [89]
4 years ago
8

Steven's Auto is trying to decide whether to lease or buy some new equipment costing $23,000 that has a life of three years, aft

er which it will be worthless. The aftertax discount rate is 5.8 percent. Assume the annual depreciation tax shield is $1,610 and the aftertax annual lease payment is $6,500. What is the net advantage to leasing?
Business
1 answer:
jolli1 [7]4 years ago
7 0

Answer:

$1,241

Explanation:

For computing the net advantage to leasing first we have to determine the total cash flow from leasing and total cash flow from buying which is shown below:

For leasing:

Year       Lease payment      PVF at 5.8%    Present value

1              $6,500                   0.9452             $6,144

2             $6,500                   0.8934             $5,807

3              $6,500                  0.8444              $5,489

Total outflow                                                   $17,440

For buy:

Year      Outflow or inflow     PVF at 5.8%    Present value

0            ($23,000)                    1                      ($23,000)

1              $1,610                       0.9452             $1,522

2             $1,610                        0.8934             $1,438

3              $1,610                       0.8444              $1,359

Total outflow                                                   $18,681

Now the net advantage to leasing is

= Buy outflow - leasing outflow

= $18,681 - $17,440

= $1,241

You might be interested in
Today is July 15, 2020 and you want to invest in a company’s stock. The current price is $8.00/share. The 52-week high was on Au
zloy xaker [14]

Answer:

678

Explanation:

5 0
3 years ago
Widgets, Inc. makes a $300 on Widhets, Inc. makes a $300 account sale to Custom Motors. How is the sale recorded in the Accounts
expeople1 [14]
B bc if the food DLC do gas so gc coo be fb bl
4 0
2 years ago
Over the past century, real gdp per person in the u. s. has grown about _____ percent per year, which means it doubles about eve
Nadusha1986 [10]

Over the past century, real GDP per person in u. s. has grown about <u>2</u> percent per year, which means it doubles about every <u>35</u> years.

GDP measures the monetary value of final goods and services—that is, the ones that might be sold with the aid of the final consumer—produced in a country in a given time frame (say 1 / 4 or 12 months). It counts all the output generated inside the borders of a country.

Gross home product is the economic degree of the marketplace price of all the final items and services produced in a selected term by using nations. because of its complicated and subjective nature, this degree is regularly revised before being taken into consideration as a dependable indicator.

GDP may be calculated by using adding up all of the cash spent by using purchasers, businesses, and the authorities in a given length. it could additionally be calculated by including up all of the money obtained by way of all the contributors inside the financial system. In either case, the range is an estimate of "nominal GDP."

Learn more about GDP here brainly.com/question/8342414

#SPJ4

6 0
2 years ago
Which of the following scenarios is a circumstance in which it would be ethical to practice confidentiality?
dimulka [17.4K]
C.
It’s personal anything personal goes down the rule of confidentiality
4 0
3 years ago
Create an oral presentation about yourself that will provide your interviewee with an accurate picture of your skills and prepar
miss Akunina [59]

In creating a personal commercial, one have to give a conversational and natural oral presentation. One can start with:

  • Been confident, have a good poised, and been professional.

<h3>What is a personal commercial?</h3>

Others are:

  • Greet by saying: Hello, my name is (name).
  • State your Goal, Interest and also your passion and others kind of attributes that can set you apart from others.

A personal commercial is known to be a short introduction that a person often give to a specific employer, mentor, or others.

Conclusively, By following the steps above, one can give a good  personal commercial.

Learn more about Commercial from

brainly.com/question/3837126

#SPJ1

6 0
2 years ago
Other questions:
  • When should a writer establish common ground before the bottom line statement
    5·2 answers
  • The __________ is the serous membrane that covers most digestive organs.
    6·2 answers
  • Tishian's funeral home has been in business for over 80 years. throughout its history, the firm has been a family-run operation.
    8·1 answer
  • Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company'
    9·1 answer
  • Goodwill messages include messages of thanks, recognition, and sympathy. Taking the time to write these messages gives importanc
    15·1 answer
  • "Explorer, Inc. is considering a new 4-year project that requires an initial fixed asset (equipment) investment of $200,000. The
    13·1 answer
  • Essay on trade unions and labor restrictions​
    12·1 answer
  • An athletic trainer who recently became certified is planning on working summer camps for an area high school before he starts h
    7·1 answer
  • In order for managers to determine the resources needed to achieve their objectives, a(n)?
    9·1 answer
  • internalizing a positive externality will cause the demand curve to a. shift to the right. b. shift to the left. c. become more
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!