A car dealer presently leases a small computer with software for $5000 per year. As an alternative
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A car dealer presently leases a small computer with software for $5000 per year. As an alternative he could purchase the computer for $7000 and lease the software for $3500 per year. Any time he would decide to switch to some other computer system he could cancel the software lease and sell the computer for $500. If he purchases the computer and leases the software,
(a) What is the payback period?
(b) If he kept the computer and software for 6 years, what would be the benefit-cost ratio, based on a 10% interest rate?
DealerA dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Lease A 5000yr Purchase a Payback Period Cost 7000 Benefit 150...View the full answer
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