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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
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If a customer buys $10,000 worth of stock in a cash account, then sells the shares for $12,000 without first paying for the buy
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Answer:

B) II and III.

Explanation:

Based on the information given the statement that are TRUE are II and III

II. The amount of $2,000($10,000-$12,000) which is the profit for the business will be given to the customer but the customer account will have to be frozen or put on hold for 90 days because the customer had not paid for the buy side before selling the shares for the amount of $12,000

III. In a situation where customer paid the amount for the buy side in full either before or after the fifth business day which is the day that follows the trading date, the customer account that had be frozen will be unfrozen or lifted because the buy side amount had be paid in full.

3 0
3 years ago
In order for a country to progress from a less developed country (LDC) to a moderately developed country (MDC), the country woul
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Answer:

d) raise the per-capita income

Explanation:

A less developed country is a country with a low per capita income. They usually don't have a sustainable development.

A moderately developed country is a country that has a per capita income of between $1000 - $12,000.

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I hope my answer helps you.

7 0
3 years ago
A financial adviser has just given you the following​ advice: "Long-term bonds are a great investment because their interest rat
Nikolay [14]

Answer:

No

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Long term bonds might not be great investments if the interest rate fall  or even slide into negative value in the future. This means that the bond will become insignificant in value.  

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3 0
3 years ago
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A company with 110,000 authorized shares of $8 par common stock issued 49,000 shares at $13. Subsequently, the company declared
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Answer:

$29,400

Explanation:

The company will distribute dividends only to outstanding shares, since the number of outstanding shares is not specified, we should assume that all the 49,000 shares issued are outstanding shares. The company declared a 2% dividend, so we must multiply the current value of the stock times 2% = $30 x 2% = $0.60 per share.

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3 years ago
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