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
alexandr402 [8]
3 years ago
6

Stanley Inc. must purchase $6,000,000 worth of service equipment and is weighing the merits of leasing the equipment or purchasi

ng. The company has a zero tax rate due to tax loss carry-forwards, and is considering a 5-year, bank loan to finance the equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with 5 end-of-year payments. Stanley can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment? (Hint: remember back to our bond pricing concepts and calculate the payment of the bond vs. the lease payment; loan payment - lease payment )
Business
1 answer:
slega [8]3 years ago
8 0

Answer:

$207,215

Explanation:

Loan Payment :

5 years, Loan = $6,000,000, Interest rate = 10%, Each payment = $1,790,000

using a financial calculator, N = 5, 1/Y = 10%, PV = - 6,000,000, FV = 0,

Calculating, PMT = $1,582,725

Therefore, difference = $1,790,000 - $1,582,725 = $207,215

You might be interested in
____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to
masya89 [10]
Background checks, I would assume.
6 0
3 years ago
Select the sentence that would best appear in the end of a narrative.
avanturin [10]

Answer:

The answer would be B.It was my birthday, and I was hoping that my wish for a dog would come true.

Explanation:

I hope this helps but i got it right on edgeunity

5 0
3 years ago
Read 2 more answers
How does a change in a​ country's real exchange rate affect its net​ exports?
Gnom [1K]

Answer: (C) When a​ country's real exchange rate appreciates​, it imports more and exports less​, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

8 0
3 years ago
Suppose your firm has a​ u-shaped average variable cost curve and operates in a perfectly competitive market. if you produce whe
Mariulka [41]
Go app so so so so so do
3 0
3 years ago
Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,
dedylja [7]

Answer:

= $210,000

Explanation:

The question is to determine the income realized by Mr. James in 2019

The income is calculated as follows:

First, the basic information for calculation:

The Purchase price for the vacation house = $1,000,000

Spent Capital additions = $10,000

2019 worth of the house = $1,200,000

Secondly, based on the extracted figures, the income is calculated  as follows

Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)

= $1,200,000 - ($1,000,000 - $10,000)

= $1,200,000 - $990,000

= $210,000

4 0
3 years ago
Other questions:
  • The market demand for wheat is Q = 100 − 2p + 1pb + 2Y . If the price of wheat, p, is $2, and the price of barley, pb, is $3, an
    9·1 answer
  • Determine the finance charge on a 8,000 loan with a monthly payment of 162,80 for 60 months
    5·1 answer
  • The supply schedule shows the relationship between
    15·1 answer
  • Describe whether the following changes cause the short-run aggregate supply to increase, decrease, or neither. a. The price leve
    12·1 answer
  • A​ firm's annual​ stockholders' report​ ________. A. summarizes and documents the​ firm's financial activities during the past y
    15·1 answer
  • Using the following information: (a) The bank statement balance is $3,868. (b) The cash account balance is $3,971. (c) Outstandi
    15·1 answer
  • Price elasticity of supply is used to gauge
    6·1 answer
  • On March 1, 2012, Freeze Company hires a new employee who will start to work on March 6. The employee will be paid on the last d
    9·1 answer
  • During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,0
    5·1 answer
  • Tulane Tires wrote a contract for a $104,000 sale of tires to the new Garden District Tour Company. Tulane only anticipates a sl
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!