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Yanka [14]
3 years ago
8

The Capitalpoor Company is considering purchasing business machine for $100,000. An alternative is to rent it for $35,000 at the

beginning of each year. The rental would include all repairs and services. If the machine is purchased, a comparable repair and service contract can be obtained for $1,000 per year.The salesperson of the business machine firm has indicated that the expected useful service life of the machine is five years, with zero market value, but the company is not sure how long the machine will actually be needed. If the machine is rented, the company can cancel the lease at the end of any year. Assuming an income tax rate of 25%, a straight-line depreciation charge of $20,000 for each year the machine is kept, and an after-tax MARR of 10%, prepare an appropriate analysis to help the firm decide whether it is more desirable to purchase or rent.
Business
1 answer:
Alex777 [14]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.Assets Liabilities and EquityCurren
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Answer:

Total current assets = $60 + $170 + $50+ $200+ 25 =  $505

Quick assets = Total current assets - Inventory

Quick assets = $505 - $200  = $305

The correct answer is D

Explanation:

Total current asset is the aggregate of cash, accounts receivable, notes receivable, inventory and prepaid expenses.

Quick asset is the difference between total current assets and inventory,

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3 years ago
Which of the following is true of entrepreneurial organizational structures? Choose all that apply.
iragen [17]

Answers are: 
<span>They are flat
A single leader makes most decisions 
Roles are undefined 
</span>They are common to small businesses
In an entrepreneurial business structure, the owner-manager makes almost all decisions and performs various roles within the company. He interacts directly with the few employees he has, often performing roles that would be "beneath" the CEO of a larger company. This is called a flat organizational structure.
Roles are not generally well defined, as there are not enough employees for the level of specialization that larger companies would have. These are common features of a small business, often in the start-up phase. 
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4 years ago
Your needs and wants never end. True or false?
AysviL [449]

Answer:

absolutely true they keeps increasing

6 0
3 years ago
(CO I) Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. Six month Canadian securities have an annualized r
Natali5045456 [20]

Answer:

U.S. dollar-Canadian dollar exchange rate is $1.5961

Explanation:

given data

1 U.S. dollar = 1.60 Canadian dollars

annualized return = 6%

annualized return = 6.5%

time = 180 day

to find out

what is the U.S. dollar-Canadian dollar exchange rate

solution

we know that 1 U.S. dollar equal to 1.60 Canadian dollars

and

exchange rate for 180 days is

exchange rate = Canadian dollar ×( 1 + canadian interest rate )  / ( 1+ US interest rate)   .....................1

put here all these value

exchange rate = Canadian dollar ×( 1 + canadian interest rate )  / ( 1+ US interest rate)

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U.S. dollar-Canadian dollar exchange rate is $1.5961

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The Gold Standard Act of 1900 ended the standard known as
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This signing by the president was what put  halt to what was regarded as bimetallism. This was the system that also allowed the use of silver also for the sake of monetary purposes.

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