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Lease versus Buy Big Sky Mining Company must install $1.5 million of new machinery in its...
Lease versus Buy Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333, 0.4445, 0.1481, and 0.0741.) 2. Under either the lease or the purchase, Big Sky must pay...
Lease versus Buy Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333, 0.4445, 0.1481, and 0.0741.) 2. Under either the lease or the purchase, Big Sky must pay...
Lease versus BuyBig Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply:The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333, 0.4445, 0.1481, and 0.0741.)Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and...
Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: The machinery falls into the MACRS 3-year class. Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance. The firm's tax rate is 40%. The loan would have an interest rate of 13%. It...
Big Sky Mining Company must install $1.5 million of new machinery in its' Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. The lease would qualify as a guidline lease for tax purposes. Also, assume no maintenance charges. Assume that the following facts apply:
aps Book Precious Metal Mining has $8 million in sales, its ROE is 10%, and its total assets turnover is 3.2x. Common equity on the firm's balance sheet is 45% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. IPS $
Sullivan-Swift Mining Company must install $1.4 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the required amount. Alternatively, a Nevada investment banking firm that represents a group of investors believes that it can arrange for a lease financing plan. Assume that the following facts apply: 1. The equipment falls in the MACRS 3-year class. The applicable MACRS rates are 33%, 45%, 15%, and 7%. 2. Estimated maintenance expenses are $65,000 per...
Precious Metal Mining has $16 million in sales, its ROE is 18%, and its total assets turnover is 3.2x. Common equity on the firm’s balance sheet is 60% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps. $ Hampton Industries had $75,000 in cash at year-end 2015 and $15,000 in cash at year-end 2016....
Precious Metal Mining has $9 million in sales, its ROE is 17%, and its total assets turnover is 2.5x. Common equity on the firm’s balance sheet is 80% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps. Please show how with step by step with a calculator.
DuPONT AND NET INCOME Precious Metal Mining has $15 million in sales, its ROE is 17%, and its total assets turnover is 2.5x. Common equity on the firm's balance sheet is 55% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps.