You have been sent by your company to Kuwait to work on a project for 4...
You have been sent by your company to Kuwait to work on a project for 4 years and you need a car. You have the choice between buying one and leasing one. After some research you find out the following:
If you decide to buy the car, it would cost you AED. 200,000 and after four years you could sell it for AED 60,000. You would have to do a major service after 2 years costing AED. 8,000 and minor services at the end of every year from year 1 to 3 year for AED 4,000.
If you decide to lease the car, you would have to pay AED 30,000 per year. You don’t need to pay for services since the leasing company will take care of that.
a) Assuming an MARR of 10% perform an evaluation and decide if you should lease or buy the car by using PW, FW and AW analysis.
b) Compare the results of PW, FW and AW analysis
c) Solve the same problem using spreadsheet functions in Excel.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
You have been sent by your company to Kuwait to work on a
project for 4...
A construction company is considering whether to lease or buy equipment for its new 4-year projec...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
3. You are deciding between leasing or purchasing a car and you need the car for...
3. You are deciding between leasing or purchasing a car and you need the car for the next four years. The details of these two alternatives are discussed below. Buy The initial cost will be $35,000. There will be major maintenance every two years, costing $2,000. The annual insurance on the car will cost $3,200 annual and the gas will cost $1,800 annually. You expect to sell the car for $8,000 dollars at the end of the four years. Lease...
T e You must decide whether to buy a new car for $21,000 or lease thesae car over a three year pe...
t e You must decide whether to buy a new car for $21,000 or lease thesae car over a three year period Under the tarms of the lease, you can make a down payment value. is it less expensive to buy or to lease? The cost for buying the car and selling it after three years of $1000 and have mondly payments od $200 Al the end of the the leased car has a residual value (the amount you pay...
After deciding to buy a new Mercedes-Benz C Class sedan, you can either lease the car...
After deciding to buy a new Mercedes-Benz C Class sedan, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs $35,000. The dealer has a special leasing arrangement where you pay $99 today and $499 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at a 6 percent APR compounded monthly. You believe you...
After deciding to buy a new Mercedes-Benz C Class sedan, you can either lease the car...
After deciding to buy a new Mercedes-Benz C Class sedan, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs $35,000. The dealer has a special leasing arrangement where you pay $99 today and $499 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at a 6 percent APR compounded monthly. You believe you...
You decided to buy a new car, and you can either lease the car or purchase...
You decided to buy a new car, and you can either lease the car or purchase it on a three- year loan. The car you wish to buy costs $32,000. The dealer has a special leasing arrangement where you pay $99 today and $450 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at a 7 percent APR. You believe you will be able...
After deciding to get a new car, you can either lease the car or purchase it...
After deciding to get a new car, you can either lease the car or purchase it with a three-year loan. The car you wish to buy costs $34,500. The dealer has a special leasing arrangement where you pay $1 today and $450 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an 8 percent APR. You believe that you will be able to...
You need a car for 5 years. You have 3 options: 1) pay $19,999 now 2)...
You need a car for 5 years. You have 3 options: 1) pay $19,999 now 2) pay $0 down and 6% interest, compounded monthly, on monthly payments for 5 years. 3) make lease payments (recall….leases paid at the beginning of each time period) for $299/month for 5 years…and you must pay $1000 down. The salvage value of the vehicle = $6500 after 5 years. Construct a choice table for interest rates from 0%-50%. Also – provide a plot of either...
After deciding to buy a new car, you can either lease the car or purchase it...
After deciding to buy a new car, you can either lease the car or purchase it on a 3-year loan. The car you wish to buy costs $43,000. The dealer has a special leasing arrangement where you pay $4,300 today and $505 per month for the next 3 years. If you purchase the car, you will pay it off in monthly payments over the next 3 years at an APR of 6%. You believe you will be able to sell...
Your company has to obtain some new production equipment to be used for the next ten years, and leasing is being considered. You have been directed to perform an after-tax study of the leasing approa...
Your company has to obtain some new production equipment to be used for the next ten years, and leasing is being considered. You have been directed to perform an after-tax study of the leasing approach. The data information for the study is as follows: Lease cost: First year, S70,000; second year, S60,000; third through ten years, S50,000 per year. Assume that a 10-year contract has been offered by the lessor that fixes these costs over the 10- year period. Other...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
3. You are deciding between leasing or purchasing a car and you need the car for the next four years. The details of these two alternatives are discussed below. Buy The initial cost will be $35,000. There will be major maintenance every two years, costing $2,000. The annual insurance on the car will cost $3,200 annual and the gas will cost $1,800 annually. You expect to sell the car for $8,000 dollars at the end of the four years. Lease...
t e You must decide whether to buy a new car for $21,000 or lease thesae car over a three year period Under the tarms of the lease, you can make a down payment value. is it less expensive to buy or to lease? The cost for buying the car and selling it after three years of $1000 and have mondly payments od $200 Al the end of the the leased car has a residual value (the amount you pay...
Your company has to obtain some new production equipment to be used for the next ten years, and leasing is being considered. You have been directed to perform an after-tax study of the leasing approach. The data information for the study is as follows: Lease cost: First year, S70,000; second year, S60,000; third through ten years, S50,000 per year. Assume that a 10-year contract has been offered by the lessor that fixes these costs over the 10- year period. Other...
Most questions answered within 3 hours.
-
Rene Descartes establishes a dualist approach to the world.
Explain this dualism, and how it connects...
asked 4 minutes ago -
According to a recent national Gallup Poll of U.S. smartphone
user, 35% upgrade their cell phone...
asked 8 minutes ago -
Suppose researchers perform a large-sample test of a population
proportion where the null hypothesis is that...
asked 7 minutes ago -
Jessica is single and has taxable income of $305,000 of which
$130,000 is attributable to her...
asked 11 minutes ago -
Can someone help me fill in the first part of this c++ code:
I need it...
asked 13 minutes ago -
A reaction vessel at 27 ∘C contains a mixture of SO2(P=3.10 atm
) and O2(P=1.00 atm...
asked 33 minutes ago -
A scientist randomly mutates the DNA of a bacterium. She then
sequences the bacterium’s daughter cells,...
asked 44 minutes ago -
2. Content theories attempt to explain work behaviors based on
__________.
a. the relationship between values...
asked 37 minutes ago -
Discuss the impact of technology on Medieval society and culture
and the impact of society and...
asked 34 minutes ago -
Assignment 3: Introduction & Environmental Analysis,
SWOT, Marketing Objectives (Goals) Marketing 4100
Directions
Total Point Value:...
asked 26 minutes ago -
Forecasts and actual sales of MP3 players at Just Say
Music are as follows:
Month
Forecast...
asked 27 minutes ago -
function predictKNN which computes the KNN prediction for given
input xi, K and train data.
A...
asked 38 minutes ago