Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exhibit 1 Fixed Cost Comparison table [ [ Alternative 1 - Con struct,Alternative 2 - Lease ] , [ Property Tax, 1 7 ,

Exhibit 1 Fixed Cost Comparison
\table[[Alternative 1- Con struct,Alternative 2- Lease],[Property Tax,17,000,Property tax,17,000],[Repairs and Insurance,3,000,Insurance,18,000],[Total,20,000,Total,35,000],[Differential,15,000,,]]
$15,000 less Fixed Costs with Alternative 1
The other advantage for constructing the facility over leasing it is the incremental expenditures on the property. For instance, in option 1, the company will have to pay $20,000 in taxes, insurance and repairs. In the second option the company will pay $17,000 on annual property tax along with the annual $18,000 insurance fee, which would be a total payment of $35,000 on a yearly basis for the 18 years of use. This is already a $15,000 difference in the incremental expenditures from option 1 and option 2.
Business Report Order and Structure
Cover Page
Table of Contents
Executive Summary
Introduction
Body Paragraphs
Conclusion
References List
Appendix/Appendices
Tips & Tricks
Use headers to divide your sections.
Use transition words and phrases to create flow between sections and sentences.
To introduce an additional idea: In addition, furthermore, moreover...
To compare: Similarly, likewise, also...
To indicate order of importance: More/most importantly, above all...
To introduce a cause/reason: As a consequerice of..., as a result of...
To introduce an effect/result: Accordingly, therefore, as a result...
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

23rd Edition

1647084105, 978-1647084103

More Books

Students also viewed these Finance questions