i wish to pirchase a bulldozer. should i lease? i could pay 300000 today, cash, or...
Homework Answers
| Alternative-1 | |||
| Purchase oF Equipment | |||
| Amount | PF Factor | Present Value | |
| Purchase Value | $ 300,000.00 | 1 | $ (300,000.00) |
| Salvage Value | $ 50,000.00 | 0.784 | $ 39,200.00 |
| $ (260,800.00) | |||
| Alternative-2 | |||
| Lease | |||
| Amount | PF Factor | Present Value | |
| Down Payment | $ 30,000.00 | 1 | $ (30,000.00) |
| Lease Payment | $ 60,000.00 | 4.329 | $ (259,740.00) |
| Net Present value | $ (289,740.00) | ||
Considering the above, you should go ahead with the Purchase of equipment
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wish to pirchase a bulldozer. should i lease? i could pay 300000
today, cash, or...
I wish to purchase a bulldozer. Should I lease? I could pay 300000 today cash or...
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Pharoah Inc. owns and operates a number of hardware stores in the Atlantic region. Recently, the company has decided to open another store in a rapidly growing area of Nova Scotia. The company is trying to decide whether to purchase or lease the building and related facilities. Currently, the cost of funds for Pharoah Inc. is 10%. Purchase: The company can purchase the site, construct the building, and purchase all store fixtures....
1 of 2 Case 6 Lease a Lot Round Table Rental Yards provides construction equipment, trailers, crutches, etc, on short- term rentals. Historically, Art, the owner, has purchased the items that he rents out, but his business has been expanding so rapidly that he is considering both straight leases and lease- purchase arrangements. He has decided to use the procurement of a new bulldozer with a list price of S290,000 as a test case. If he purchases the bulldozer outright,...
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