Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
Answer:
the benefit of carrying out the project is $119,666 in today's $
Explanation:
initial outlay = -$2,800,000
cash flow 1 = $820,000
cash flow 2 = $820,000
cash flow 3 = $820,000
cash flow 4 = $820,000
cash flow 5 = $820,000
discount rate = 12.5%
NPV = -$2,800,000 + $820,000/1.125 + $820,000/1.125² + $820,000/1.125³ + $820,000/1.125⁴ + $820,000/1.125⁵ = $119,666
Answer:
The correct answer is letter "B": Synergy.
Explanation:
Synergy is the belief that the whole is more than the sum of all its parts. In Business, synergy implies that the whole organization is more important than the individual effort of the employees. This approach aims to let workers know that their joint work is more valuable than their isolated performance.
Answer:
The payback period in years is closest to;
B). 3.00
Explanation:
<em>Step 1: Determine the total cost of the go-kart</em>
Using the expression;
Total cost=purchase cost+annual depreciation×number of years
where;
purchase cost=$5,100
assume annual depreciation=0
number of years to payback=n
replacing;
Total cost=5,100+(0×n)=5,100
<em>Step 2: Total cash inflows</em>
Total cash inflows=(1,700×n)=1,700 n
<em>Step 3: Determine payback period</em>
Equate total cost to total cash inflows
5,100=1,700 n
n=5,100/1,700
n=3
The payback period in years is closest to 3 years
