Master Manufacturing is considering the purchase of a machine
for $500,000. Alternatively, the machine could be leased on a
five-year contract for $125,000 per year with lease payments made
at the beginning of each year. If the company purchases the
machine, maintenance costs will be $25,000 per year and the salvage
value of the machine after five years is expected to be
$70,000.
Answer the below questions Using an interest rate of 10% per year.
Match the closest correct answers for the below questions:
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Master Manufacturing is considering the purchase of a machine for $500,000. Alternatively, the machine could be leased on a five-year contract for $125,000 per year with lease payments made at the beg...
Question 15 10 points Save Answer Master Manufacturing is considering the purchase of a machine for $500,000. Alternatively, the machine could be leased on a five-year contract for $125,000 per year with lease payments made at the beginning of each year. I the company purchases the machine, maintenance costs will be $25,000 per year and the salvage value of the machine after five years is expected to be $70,000. Answer the below questions using an interest rate of 10% per...
Question 15 Master Manufacturing is considering the purchase of a machine or $500,000. Aernalively, the machine could be leased on a five-year contract for $125,000 par year with lease maintenance costs wil be $25,000 per year and the salvage value of the machine after flive years is expected to be $70,000 beginning of each yoar. It the compary purchases the machine, Answer the below questions Using an interest rate of 10% pir year Match the dosest corectansen Int beon gostos...
Close Window Save and Submit & Click Submit to compiete this assessment Question 15 of 1 Question 15 10 points Save Answer Master Manufacturing is considering the purchase of a machine for $500,000. Ahternatively, the machine could be leased on a five-year contract for $125,000 per year with lease year. If the company purchases the machine, maintenance costs willbe $25,000 per year and the salvage value of the machine after five years is expected to be $70,000 Answer the below,...
Click Submit to complete this assessment. Question 11 See and Submit Question 11 of 11 10 points alternative should be recommended based on the the company purchases the drilling rig, maintenance costs will be $25,000 per year. The salvage value of the rig in five years is expected to be $70,000. present worth method? Use MARR of 10%. Select the closest correct answers for the below questions from the answer's options provided • Present Worth of Buy A $-396,250 •...
Equipment is being leased from a dealer for $500,000 per year with beginning of year payments and the lease expires three years from now. It is estimated that a new lease for the succeeding four years on similar new equipment will provide the same service and will cost $750,000 per year with beginning of year payments. The first payment under the new lease occurs at the beginning of year four. The equipment manufacturer is offering to terminate the present lease...
Question 12 For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B 240,000 First cost (AED) 20,000 Annual maintenance cost per year, AED 5,000 2.300 Periodic cost every 10 years, AED 10,000 Salvage cost 2000 Life. vears Match the closest correct answers for the below questions: Calculate the present value of the maintenance costs for...
Your firm is considering leasing a radiographic x-ray machine. The lease lasts for 3 years. The lease calls for 4 payments of $25,000 per year with the first payment occurring immediately. The computer would cost $140,000 to buy and would be straight-line depreciated to a zero salvage value over 3 years. The actual salvage value is negligible. The firm can borrow by issuing debt at a rate of 12%. The corporate tax rate is 40%. What is the NPV of...
Question 9 8 points Save Ans A healthcare group has purchased diagnostic medical imaging systems for an annual payment of $ 80,000 at the end of each year for 8 years. For the maintenance service, starting at the end of year 2, the payment will be increased by $5000 each year. Assume an interest rate of 10%. Match the closest correct answers for the below questions: A. I$95,020 What is the present worth of base amount? B. 1580,144 # What...
Question 12 15 points For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B First cost (AED) 20,000 240,000 Annual maintenance cost per year, AED5,000 2,300 Periodi e cost every 10 years, AED 10,000 Salvage cost 2000 Life, years Match the closest correct answers for the below questions: A. [Alternative A] B. -44,483.50] C. I-269,275]...
P20.14 Dubois Steel Corporation, as lessee, signed a lease agreement for equipment for five years, beginning January 31, 2020. Annual rental payments of $41,000 are to be made at the beginning of each lease year (January 31). The insurance and repairs and maintenance costs are the lessee’s obligation. The interest rate used by the lessor in setting the payment schedule is 9%; Dubois’s incremental borrowing rate is 10%. Dubois is unaware of the rate being used by the lessor. At the...