subject
Business, 03.12.2019 06:31 murillokiara0kiki

Suppose you are contemplating the purchase of a commercial lawn mower at a cost of $10,000. the expected lifetime of the machine is three years. you can lease the asset to a local business for $4,000 annually (payable at the end of each year) for three years. the lessee is responsible for the upkeep and maintenance of the machine during the three-year period.

if you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking?
yes
no

is the project profitable at an interest rate of 12 percent? provide calculations in support of your answer.
yes
no

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:40
2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.
Answers: 2
question
Business, 22.06.2019 04:40
How long have u been on dis website
Answers: 2
question
Business, 22.06.2019 04:40
Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answers: 3
question
Business, 22.06.2019 11:40
On january 1, 2017, sophie's sunlounge owned 4 tanning beds valued at $20,000. during 2017, sophie's bought 3 new beds at a total cost of $14 comma 000, and at the end of the year the market value of all of sophie's beds was $24 comma 000. what was sophie's net investment
Answers: 3
You know the right answer?
Suppose you are contemplating the purchase of a commercial lawn mower at a cost of $10,000. the expe...
Questions
question
Chemistry, 24.01.2020 14:31
question
Mathematics, 24.01.2020 14:31
question
Mathematics, 24.01.2020 14:31
Questions on the website: 13722360