**Question: **You have to make a decision either to buy or to rent the equipment for your restaurant. Purchase cost would be $30,000. Of this amount, $7,500 would be paid in cash now, and the balance would be owed to the equipment supplier. The owner agrees to accept $4,500 a year for 5 years as payment toward the principal, plus interest at 11%. The equipment will have a 5-year life and a residual value of $4,000. The residual value can be recovered by trade-in or selling the equipment. Straight-line depreciation basis will be used over the 5 years. Alternatively, the equipment can be rented for the 5 years at a rental cost of $7,000 a year. Assume a 28% income tax rate. Discount rate to be used is 11%.

a. Using discounted cash flow, which would be the better investment?

b. What other factors might you want to consider that would change your decision?

What is the income tax rate : Pete's Pizza is planning to purchase a new type of oven that cooks pizza much faster than the conventional oven now used. The new oven is estimated to cost. |

Explain the relevance and application of the social contract : Explain the relevance and application of the social contract to Legitimacy Theory in accounting. |

How does the disease affect the respiratory system : How does the disease affect the respiratory system in particular? How does it deviate from the definition of health discussed in Module One? |

Static aggregate demand and aggregate supply model : Explain how the static aggregate demand and aggregate supply model gives us misleading results about the price level, particularly with respect to decreases. |

Which would be better investment using discounted cash flow : You have to make a decision either to buy or to rent the equipment for your restaurant. Purchase cost would be $30,000. Of this amount, $7,500 would be paid. |

Explain the theories you reference with supporting citations : Explain Cartesian rationalism and the resulting mind/body problem - You may draw upon your analysis of the Cartesian Method |

What is the health issue that is being described : What are the proposed solutions (if any) or approaches to the problem? Are differing views described in the movie? If so, what are they? |

Calculate the payback period and arr : For many years, a motor hotel has been providing its room guests with room service of soft drinks and ice using the services of a part-time bellhop to deliver. |

Why is poverty often called a vicious cycle : What are some of the challenges children in poverty face that children who have better access to resources might not face? |

## Set up the appropriate primal modelA price taker owns an initial endowment of factors of production represented by the vector b. He intends to produce a vector of commodity outputs x1. |

## Annual returns will depend on both size of the stationEven though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gas station. Susan's problem is to decide how large her station should be. |

## Accept a higher levelResearchers routinely choose an alpha level of 0.05 for testing their hypotheses. What are some experiments for which you might want a lower alpha level (e.g., 0.01)? What are some situations in which you might accept a higher level (e.g., 0.1)? |

## Compute the minhash signatureCompute the minhash signature for each column if we use the following three hash functions: h1(x) = 2x + 1 mod 6; h2(x) = 3x + 2 mod 6; h3(x) = 5x + 2 mod 6. |

## Why the equations describe a mutualistic interactionExplain why the equations describe a mutualistic interaction. Determine the qualitative behavior of this model by phase-plane and linearization methods. Why is it necessary to assume that αβ |

## Embark on an aggressive advertising campaignManagement in Pharmgen Corporation has come up with three possible decisions. The first one, the base case, is to leave things the way it is. The second one is to embark on an aggressive advertising campaign which would change the profit number in.. |

## Distribution of a random variableSuppose that the distribution of a random variable X is approximately exponential with a mean of 10: |

## What kind of monopolistic behavior is implied by this lcpGiven the LC problem where M and q have the following structure: where D1 and D2 are asymmetric positive semidefinite matrices. |

## Determine the value of hA helium-filled balloon is tied to a 2.00-m-long, 0.050 0-kg uniform string. The balloon is spherical with a radius of 0.400 m. When released, it lifts a length h of string and then remains in equilibrium, as in Figure P14.55. Determine the value .. |

## Define the random variableConsider the space of two coin tosses Ω2 = {HH , HT, TH, TT} and let stock prices be given by S0 = 4, S1 (H) = 8, S1(T) = 2, S2(HH) = 16, S2(HT) = S2(TH) = 4, S2(TT) = 1. Define the random variable X = 1 if S2 = 4 otherwise 0 |

## How much will each deposit beTo pay off $50,000,000 worth of new construction bonds when they come due in 20 years, a water municipality must deposit money into a sinking fund. |

## Discuss the mean profit and also variabilityJoe is the manager of an electronics store that sells TVs, HiFis, computers, and various other electronic devices. For next month Joe is planning a promotion. |

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