Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Bugsy?s Haulers, is considering the purchase or lease of a fuel tanker.
The Purchase Option
The purchase price is R4 000 000. This will be paid off as follows:
If the tanker is owned, the service and maintenance charges will amount to R20 000 per annum. The salvage value of the tanker at the end of the period amounts to R500 000. The company uses the straight line method of depreciation.
The Leasing Option
Alternatively, the tanker can be leased on a four year contract for R850 000 pa, with a deposit of R700 000 payable immediately and 50% refunded at end of lease period.
The after tax cost of debt is 12%. And the company tax rate is 30%
Required
1. Calculate the cost of owning and leasing using the discounted cash flow method.
2. Advise on the option to adopt, with justification.
essay
Accounting Standards in Canada: : In 2005, the Accounting Standards Board in Canada promoted the use of IFRS over the use of GAAP. The companies of Canada are supposed to ad
What is a purchase return? A buy purchase return occurs when a buyer profits products that it has bought from a provider. Under the regular inventory system, the cost of the
A researcher is interested in the relationship between fathers' performance in high school and their children's social skills. She obtains the high school transcripts of fathers a
Please show your work to receive credit for this question.. Harkin Electronics is planning its production next quarter for its two product lines, relays and capacitors. The pro
Budgets and budgetary control A fund is an operating plan for a business, ready in progress. Funds may be set in money conditions, egg a revenue funds of £500,000, or it can
which one is better skewed or kurtic distributed data?
if a series of three observations has a mean andd median of 4 and mean absolute deviation of 4/3. what is the series
HOW IS IT RELATED
Consider a person who repeatedly plays a game of chance (gambling)with two results possible (win or lose) with a probability p = 0, 3 to win. If the person has bet x amount and if
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd