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can someone help me with this practice problem the top picture are the questions. The net present value of the leasing alternative is $ -
can someone help me with this practice problem
The net present value of the leasing alternative is $ - 42,573 (Round to the nearest dollar.) The net present value of the buying alternative is $ - 47,940(Round to the nearest dollar) What should you do? (Select from the drop-down menus) The cost of is less, so you should the equipment buy lease Ince You need a particular piece of equipment for your production process An equipment masing company has offered to lose the equipment to you for $9,700 per year it you sign a guaranteed 5-your lease the lease is paid at the end of each year) The company would also maintain the equipment for you as part of the losse Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below the equipment has an economic life of 5 years). If your discount rate is 72% what should you do? Year o Year 1 Year 2 Year 3 Year 4 Year 6 540,000 32 000 $2,000 - $2.000 - $2.000 -$2,000 The net present value of the leasing alternatives (Round to the nearest dollar) the top picture are the questions.
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