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
Yanka [14]
2 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]2 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
You might be interested in
Young people need about
Doss [256]
D. Nine to eleven, a quick google search solves that
7 0
3 years ago
Read 2 more answers
Suppose that an income producing property is expected to yield cash flows for the owner of $150,000 in each of the next five yea
vivado [14]

Answer:

$1,449,635.50  

Explanation:

The computation of the value of the property today is shown below:

First the present value for 5 years is

Year Cash flows    Discount factor      Present value

1 $150,000  0.925925926 $138,888.89  

2 $150,000  0.85733882         $128,600.82  

3 $150,000  0.793832241         $119,074.84  

4 $150,000  0.735029853         $110,254.48  

5 $150,000  0.680583197          $102,087.48  

Total present value            $598,906.51  

The discount factor is

= 1 ÷ (1 + rate)^years  

And, the formula of future value is

Future value = Present value × (1 + rate)^number of years

$1,250,000 = Present value × (1 + 0.08)^5

$1,250,000 = Present value × 1.469328077

So, the present value is $850,729

Now the today value of the property is

= $598,906.51 + $850,729

= $1,449,635.50  

7 0
3 years ago
he auditors have some uncertainties, but these uncertainties are not so material that they cannot form an opinion on the fairnes
ddd [48]

Answer:

D. The auditors cannot form an opinion on the fairness of presentation of the financial statements as a whole.

Explanation:

The issue of a disclaimer of opinion normally represent that the auditor could not able to form the opinion on the fairness of the financial statements that shows the financial position and the condition of the company.

He is not able to give his opinion for the company financial statements

So, the last option would be correct

And, the rest of the options would be incorrect

6 0
3 years ago
Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the co
BaLLatris [955]

Answer:

The correct answer is C

Explanation:

NCI stands for the Non-controlling interest which also called as the minority interest, it is defined as the position of ownership where the shareholder owns outstanding shares that is less than 50% and has no control on the  decisions.

Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.

7 0
2 years ago
Christine is an unemployed stenographer who cannot find work in Florida. There are several companies hiring stenographers in New
DiKsa [7]

Answer:

Option (b) is correct.

Explanation:

Cyclical unemployment refers to the unemployment that occured because of the fall in the demand for goods and services in an economy. It is largely affected by the fluctuations in economic growth of a country. When the overall demand for goods and services are not matched with the full employment in an economy. This unemployment is mostly occured when the economy of a country is contracting.

8 0
3 years ago
Other questions:
  • Giving consumers larger quantities at a low price would help taco bell regain _____.
    6·1 answer
  • Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the current year and had 1,000 mattresses
    9·1 answer
  • The positive principle, the constructionist principle, and the simultaneity principle are principles of:
    11·1 answer
  • The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Wor
    7·1 answer
  • Question 4 (5 points)
    5·1 answer
  • Which of the following refers to a cluster of decisions concerning what organizational goals to pursue, what actions to take, an
    6·1 answer
  • ________ is the amount an employee earns before payroll withholding is performed.
    10·2 answers
  • Select the four common tools managers use to analyze competitive intelligence and develop competitive advantages. a. The three g
    14·2 answers
  • Leaders:
    11·1 answer
  • Software that helps users to communicate with family, friends and business colleagues by posting personal information, status up
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!