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mestny [16]
3 years ago
7

if the company chooses the lease option, it will have to pay an immediate deposit of 25000 to cover any future damages to the eq

uipment. deposit is refundable at the end of the lease term. the annual lease payments are made at the end of each year. based on a net present value analysis with a discount rate of 20% what is the financial advantage (disadvantage) of buying the equipment rather than leasing it
Business
1 answer:
Likurg_2 [28]3 years ago
8 0

Answer:

The answer is "68,788".

Explanation:

Net cash flow present value = immediate deposit + Annual lease payment present value

= 25000+(18000\times 2.991)-25000\times 0.402

Net cash flow present value = 78838-10050 = 68788

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Answer:

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<em>Part a:</em>

According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.

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                                           y=k^{\alpha}=f(k)

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<em>Part b:</em>

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Now this indicates that

y^*=f(k^*)

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Thus the sole dependence of per capita GDP is on per capita capital stock.

Thus the per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.

6 0
3 years ago
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