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
fgiga [73]
3 years ago
9

A company is considering whether to purchase or lease a piece of equipment for an upcoming project. The cost to purchase is $10,

000 plus $100 per day to operate or $500 per day to lease (including operating costs). If the company anticipates using the equipment for a total of 20 days, they will be indifferent as to whether or lease or purchase it.a. Trueb. False
Business
1 answer:
marta [7]3 years ago
6 0

Answer:

If the company is going to use the machine for 20 days, it is cheaper to lease it.

Explanation:

Giving the following information:

The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease

<u>First, we need to structure the total cost formula for each option:</u>

Purchase= 10,000 + 100x

x= number of days

Lease= 500x

x= number of days

<u>Now, we can determine the total cost for 20 days:</u>

Purchase= 10,000 + 100*20= $12,000

Lease= 500*20= $10,000

If the company is going to use the machine for 20 days, it is cheaper to lease it.

You might be interested in
Goods in process inventory account of a manufacturing company that uses an overhead rate based on the direct labor cost has a 4,
mafiozo [28]

Answer:

Overhead absorption rate

= Overhead absorbed/Actual labour cost x 100

= $4,400/$800  x 100

= 550% of direct labour cost

Explanation:

Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.

7 0
3 years ago
Isabella wants to do something for others around the holidays. She fills three boxes with things she does not need, and donates
Virty [35]

Answer:

I think is the first one I'm not sure but I think is that one.

5 0
2 years ago
Read 2 more answers
Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,0
Evgen [1.6K]

Answer:

$60,000

Explanation:

According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.

And,  For this, the asset should be depreciated real property.

In the question, there is depreciation charged for apartment building so the same is eligible

The eligibility is allowed up to $60,000 and the same is to be considered

8 0
2 years ago
A decrease in interest rates will:__________.
Allisa [31]

Answer:

c. not affect the bond's duration.

Explanation:

The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.

On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.

Payment frequency would not change with the decrease interest rate.

The Coupon rate will also remain the same whether the interest rate increases or decreases.

5 0
2 years ago
Consider the market for pens. Suppose that increased medical concerns over lead pencils have led schools to steer away from penc
LiRa [457]
Answer: False

Explanation:
Being able to determine the effect on price would have to be circumstantial
4 0
3 years ago
Other questions:
  • Asymmetric Frames Corp. had a return on equity of​ 15%. The​ corporation's earnings per share was​ $6.00, its dividend payout ra
    15·1 answer
  • Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payab
    7·1 answer
  • The december 31, 2015, balance sheet of maria's tennis shop, inc., showed current assets of $1,205 and current liabilities of $9
    14·1 answer
  • Nakato, a South Asian country, exported goods worth $500 million and imported goods worth $400 million in the last fiscal year.
    8·2 answers
  • FARO Technologies, whose products include portable 3 D measurement equipment, recently had 17 million shares outstanding trading
    15·1 answer
  • An accrual of wages expense would have what effect on the balance sheet? A. Decrease liabilities and increase equity B. Increase
    13·2 answers
  • Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $100,000 apiece. The sequesters last for
    15·1 answer
  • Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units
    13·1 answer
  • The price elasticity of demand for senior citizens purchasing coffee from McDonald's is −5, while non-senior citizens have a pri
    12·1 answer
  • How do ethics and law govern how businesses conduct themselves ?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!