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agasfer [191]
3 years ago
7

Laredo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $120,000. The frei

ght and installation costs for the equipment are $1,500. If purchased, annual repairs and maintenance are estimated to be $2,200 per year over the six-year useful life of the equipment. Alternatively, Laredo Corporation can lease the equipment from a domestic supplier for $25,000 per year for six years, with no additional costs.Prepare a differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment.
Business
1 answer:
Rina8888 [55]3 years ago
8 0

Answer:

It is cheaper for Laredo to purchase the machine as he saves a sum of  $15,300 through it.

Explanation:

Differential analysis is a system of evaluating the cost and benefits that would arise from alternative solutions to the same problems. The analysis of different options towards a decision making in order to arrive at the best option

Cost of Purchase.

Initial cost  - $120,000

Freight & Installation - $ 1500

Repair & Maintenance - $2200 *6 - $13200

Total -$134,700

Cost of lease = $25,000*6=$150,000

It is cheaper for Laredo to purchase the machine as he saves a sum of  $15,300 through it.

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3 years ago
Suppose your bank pays you 4 percent interest per year on your savings​ account, so that​ $1,000 grows to​ $1,040 over a oneminu
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Answer:

3 percent which is $30

Explanation:

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3 years ago
Internal information provides an understanding of factors outside of the organization
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Answer:

false

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Definition

4 0
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The correct word for the blank space is: joint.

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8 0
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Classify each of the following items as a final good or an intermediate​ good, and classify the expenditure on each final good a
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Answer:

Classification of Goods

a.           Intermediate good; Investment

b.           Final Good = Consumption

c.           Intermediate good; Investment

d.           Intermediate good = Investment

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An intermediate good produces a final good for consumption.  Intermediate goods are used for investment to generate more resources that can be consumed in the future.  A final good, in most cases, does not require further processing.  It is consumed immediately by the buyer.

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3 years ago
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