What is the minimum lease payment

Assignment Help Accounting Basics
Reference no: EM133180772

Question - What is the minimum lease payment that would make purchasing a precision manufacturing machine and writing a 4-year lease contract on it? The price of the machine is $175,000, it is a three-year asset for depreciation purposes, it has a residual value of $7,000, it requires $500 maintenance per year, the cost of capital is 10%, and the corporate tax rate is 40%.

Reference no: EM133180772

Questions Cloud

What is the equivalent annual cost of the econo-cool model : Econo-Cool air conditioners cost R500 to purchase, result in electricity bills of R250 per year, What is the equivalent annual cost of the Econo-Cool model
Collective agreement regarding the topic : Three courier drivers and one dispatcher from the ABC Courier Company went out for a beverage after work. In the course of their conversation, they decided that
Perform a data analysis of a data set : Perform a data analysis of a data set with the use of R language. You should submit a PDF document that should be generated from your RMarkdown
What facts in the case support the discipline imposed : 1. What facts in the case support the discipline imposed by the employer?
What is the minimum lease payment : What is the minimum lease payment that would make purchasing a precision manufacturing machine and writing a 4-year lease contract on it
Method of departmentalization : Draw the organization chart of this company. What is the method of departmentalization used at each level on the chart?
Promoting the health and safety of employees : What are the most significant challenges and how can employers bring a culture promoting the health and safety of their employees?
Compute the diluted earnings per share : During the current year, the entity paid dividends of P5 per share on the preference share. Compute the diluted earnings per share
What is the most popular package in Ireland : Use Apache Spark RDD's transformations and actions to answer above questions about the dataset - What is the most popular package in Ireland

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd