What is the pv if you buy

Reference no: EM13274692

PLease help and explain the concept of this. Thanks so much. A firm can lease a truck for 4 years at a cost of $43,000 annually. It can instead buy a truck at a cost of $93,000, with annual maintenance expenses of $23,000. The truck will be sold at the end of 4 years for $33,000. a. Calculate present value if the discount rate is 10%: What is the PV if you Lease? What is the PV if you Buy?

Reference no: EM13274692

Questions Cloud

The machine setup activity cost pool : The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company..

Depict the structure for thin layer chromotography : Draw the structure for thin layer chromotography? what is it melting and boilng point, density, molecular weight and strucural formula

How fast will the toolbox be moving : While a roofer is working on a roof that slants at 43.0 above the horizontal, If it starts 4.60m from the lower edge of the roof, how fast will the toolbox be moving

Determine the sum of the incremental cash flows : determine the sum of the incremental cash flows for Alternative B-Alternative A First cost $: A=-50,000 B=-85,000 Annual operating cost/year: A=-8,600 B=-2,000 annual revenue/year: A=22,000 B=45,000 salvage value: A=3,000 B=8,000

What is the pv if you buy : The truck will be sold at the end of 4 years for $33,000. a. Calculate present value if the discount rate is 10%: What is the PV if you Lease? What is the PV if you Buy?

Why do the rates of return differ : You purchase a stock for $ 100 that pays an annual dividend of $ 5.50. At the beginning of the second year, you purchase an additional share for $ 130. At the end of the second year

Calculate the magnitude of the angular momentum of the disk : A uniform solid disk of mass m = 3.05 kg and radius r = 0.200 m rotates about a fixed axis perpendicular to its face with angular frequency 5.97 rad/s. Calculate the magnitude of the angular momentum of the disk

Design 2-stage switching network to connect incoming trucks : Design a two-stage switching network, using 4×4 switches, to connect 16 incoming trunks to 16 outgoing trunks, using a consistent numbering arrangement for associating the switches with the links.

How these factors may and can impact capital budgeting : Capital budgeting can be affected by exchange rate risk, political risk, transfer pricing, and strategic risk. Explain how these factors may and can impact capital budgeting.

User Account

All Pages