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postnew [5]
3 years ago
6

There are two parties in any lease contract—the lessee and the lessor. To a lessor, a lease analysis involves a capital budgetin

g analysis of the property or equipment to be leased. The lessor’s decision is either to purchase and lease-out the asset, or not make the investment at all.
Like any capital budgeting decision, the lessor needs to evaluate the rate of return expected to be earned from making the lease. Further, since the cost and other terms of leases involving high-cost items are negotiated, this rate of return information is also important information for a prospective lessee.

From the following statements, identify the steps involved in lease analysis from a lessor's perspective. Check all that apply.a) Determine the lease payments minus income taxes and any maintenance expenses that the lessor must incur as per the lease agreement.b) Determine the net cash outlay of the lease agreement.c) Determine the invoice price of the leased equipment plus any lease payments made in advance.d) Check & ensure that the NPV of the lease remains negative.
Business
1 answer:
inn [45]3 years ago
4 0

Answer:

a, b

Explanation:

It is important to note that a lessor's goal is to make a profit, thus he would be more concerned about knowing what is the value realized after subtracting the lease payments from his income taxes and any maintenance expenses that must be incurred as per the lease agreement.

In order to be cost efficient, he might as well determine the net cash outlay of the lease agreement.

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Does the firm need to alter its choices of C and L to decrease​ cost? A. ​Yes, they need to increase Upper Lincrease L which wou
kherson [118]

Answer:

Yes, they need to increase Upper L which would cause MP Subscript Upper L to decrease and MP Subscript Upper C to increase.

Explanation:

In the specific problem outlined above, the company wants to maximize its revenue and ensure that the production cost is as low as possible for the given quantity of land, cement and the available labor. In order to ensure that this is possible, the company must try to increase the upper L so that there would be an increase in MP (subscript upper C) and a decrease in MP (subscript upper L).

4 0
3 years ago
Garcia Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. Cash proceeds exceed
777dan777 [17]

Answer:

Discount on bond payable

Explanation:

since in the question it is mentioned that the company has issued the common stock warrants also the cash proceeds is more than the sum of the fair value + face value

So we presume that the bond are to be sold at the discount

Therefore the excess should be reported as the discount on bond payable

5 0
2 years ago
Based on your results, how much does the captive offshoring model allow for risk? the answer is the difference between the tcos
blsea [12.9K]

The captive offshoring model allows for risk solely based on the Ricardian model.

<h3>What is the Ricardian model?</h3>
  • While the Heckscher-Ohlin model exclusively examines trade in finished goods, the Ricardian model can be used to assess offshoring.
  • There is no distinction because offshore may be studied using the offshoring, Ricardian, and Heckscher-Ohlin trade models.
  • The Ricardian model is an economic theory that proposes that countries export what they can produce most efficiently and plentifully.
  • Ricardian model is used to evaluate trade as well as, the equilibrium of trade between two countries that have varying specialties and natural resources
  • The Ricardian model shows that if anyone wants to maximize total output in the world, then one should fully employ all resources worldwide, allocate those resources within countries to each country's comparative advantage industries, and allow the countries to trade freely thereafter.

To learn more about Ricardian model with the given link

brainly.com/question/24261385

#SPJ4

5 0
2 years ago
A citizen of the United States A. feels no obligation to do community service. B. gets no preparation for community service in s
Harrizon [31]
Has both a private life and a public life
4 0
3 years ago
) A company determines that its marginal revenue per day is given by R'(t) = 100et , R(0) = 0, where R(t) = the revenue, in doll
marysya [2.9K]

Answer:

The answer is below

Explanation:

The marginal revenue R'(t) = 100e^t and the marginal cost C'(t) = 140 - 0.3t.

The total profit is the difference between the total revenue and total cost of a product, it is given by:

Profit = Revenue - Cost

P(T) = R(T) - C(T)

P(T) = ∫ R'(T) - C'(T)

Hence the total profit from 0 to 5 days is given as

P(T) = \int\limits^0_5 {(R'(T)-C'(T))} \, dt= \int\limits^0_5 {(100e^t-(140-0.3t))} \, dt\\ \\P(T)= \int\limits^0_5 {(100e^t-140+0.3t))} \, dt\\\\P(T)= \int\limits^0_5 {100e^t} \, dt- \int\limits^0_5 {140} \, dt+ \int\limits^0_5 {0.3t} \, dt\\\\P(T)=100\int\limits^0_5 {e^t} \, dt- 140\int\limits^0_5 {1} \, dt+0.3 \int\limits^0_5 {t} \, dt\\\\P(T)=100[e^t]_0^5-140[t]_0^5+0.3[\frac{t^2}{2} ]_0^5\\\\P(T)=100(147.41)-140(5)+0.3(12.5)=14741-700+3.75\\\\P(T)=14045

3 0
3 years ago
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