Business, 06.12.2019 20:31 dondre54

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 the firm decide whether it is more desirable to purchase or rent.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 09:40, Tyrant4life

Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?

Answers: 2

continue

Business, 22.06.2019 12:20, KindaSmartPersonn

Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?

Answers: 3

continue

Business, 22.06.2019 23:20, QueenNerdy889

You work as the sales manager for a company that sells office supplies to businesses of all sizes. because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, post-it notes, and other office supplies from the manufacturers. when reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. when you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?

Answers: 3

continue

Business, 23.06.2019 03:10, nuggetslices

Norbert and suzie are both lineworkers for a utility company who have been working together for almost two years. norbert frequently tells suzie that the job is called "lineman" and not "linewoman," and thus, it is not a woman's job. he plays practical jokes on her such as hiding some of her tools and sabotaging her truck. he asks her when she plans on getting pregnant and staying at home to take care of her children and gives her copies of " wanted" ads for secretarial and waitress jobs. such behavior has kept suzie disturbed at work. if suzie complains about norbert's conduct:

Answers: 1

continue

You know the right answer?

The capitalpoor company is considering purchasing business machine for $100,000. an alternative is t...