Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a b
ook value of $282,400 (original cost of $400,700 less accumulated depreciation of $118,300) for $275,700, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $284,900 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,600. Required:
Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery.
An economic system is defined by the way scarce resources are distributed in an economy.
There are 4 types of major economic systems which are following;
A mixed economy is an economic system, like its name is a mix of elements of planned economies, free markets with intervention of the state and public enterprises.
A command economy is a system where the government is key decision maker of what goods and services will be produced and introduced by the economy.
A market economy is the one in which the investment, production and distribution are dictated by the forces of demand and supply.
A traditional economic system is a result of customs, history and cultural norms which include the rules and manner of their distribution as well.
Credit unions are not-for-profit financial cooperatives. Whose earnings are paid back to members in the form of higher saving rates and lower loan rates.Banks are for profit businesses with earning paid to stockholders only.
