Help Save & Exit 14 02:16:37 oposed Book Submit T4 Enterprises develops sophisticated communications equipment for government and commercial use. It is organized into two divisions, which are evaluated as Investment centers. The cost of capital used in evaluating the divisions is 12 percent. A local startup has developed and patented a process that significantly shortens production times. The startup has offered to either sell the patent to Ta's Government Division (GD) or to lease the exclusive rights to the process. (The process is not usable in the Commercial Division). The lease and the estimated economic life of the process) is seven years. It purchased, the technology would cost $4.90 millon. A seven-year lease would require annual payments of $1,295,000. The division manager of GD estimates that annual income using the process (before considering any depreciation or lease payments) would be $20 million, The Investment for GO (before considering any impact from the new technology) is $120 million Assume that the potent would be amortized on a straight-line basis if purchased. Ignore any income tax effects. Required: a. Suppose the manager of GD is evaluated using return on investment (RON). Will she prefer to lease or purchase the technology? b. Suppose the manager of GD is evaluated using residual income. Will she prefer to lease or purchase the technology? (Enter your answer in thousands of dollars.) c. Suppose the manager of GD is evaluated using return on investment (RON). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology (Enter your answer in thousands of dollars. Round your intermediate calculation to 2 decimal places. Round your final answer to the nearest whole dollar amount.) d. Suppose the manager of GD is evaluated using residual income. What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? (Enter your answer in thousands of dollars. Round your final answer to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. Help Save & Ex investert (ROI). W ste preret to ease evaluated using residual income. Will she prefer to lease or purchase your answer in thousands of dollars.) ppose the manager of GD is evaluated using return on investment (RON). What is the lease paymer would make the manager indifferent between leasing and purchasing the technology? (Enter your ans thousands of dollars. Round your intermediate calculation to 2 decimal places. Round your final ans nearest whole dollar amount.) d. Suppose the manager of GD is evaluated using residual income. What is the lease payment that wou the manager indifferent between leasing and purchasing the technology? (Enter your answer in thouse dollars. Round your final answer to the nearest whole dollar amount.) 16.15 1 Complete this question by entering your answers in the tabs below. Required A Required B Required Suppose the manager of GD is evaluated using return on investment (ROI). Will she prefer to lease or purch technology? (Enter your answers as a percentage rounded to 2 decimal places (.e., 32.12).) Required D ROI of purchase option ROI of lease option Which option will she prefer? % % Required A Required B > Save & Exit Submi 14 Required: a. Suppose the manager of GD is evaluated using return on investment (ROI). Will she prefer to lease or purchas the technology? b. Suppose the manager of GD is evaluated using residual income. Will she prefer to lease or purchase the technology? (Enter your answer in thousands of dollars.) c. Suppose the manager of GD is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? (Enter your answer in thousands of dollars. Round your intermediate calculation to 2 decimal places. Round your final answer to nearest whole dollar amount.) d. Suppose the manager of GD is evaluated using residual income. What is the lease payment that would mak the manager indifferent between leasing and purchasing the technology? (Enter your answer in thousands o dollars. Round your final answer to the nearest whole dollar amount.) 02:15:54 Kipped -Book Complete this question by entering your answers in the tabs below. Required a Required B Required C Required D Suppose the manager of GD is evaluated using residual income. Wilf she prefer to lease or purchase the technolc your answer in thousands of dollars.) Residual income of purchase option Residual income of lease option Which option will she prefer? a. Suppose the manager of GD is evaluated using return on investment (ROI). Will she prefer the technology? b. Suppose the manager of GD is evaluated using residual income. Will she prefer to lease a technology? (Enter your answer in thousands of dollars.) c. Suppose the manager of GD is evaluated using return on investment (ROI). What is the lea would make the manager indifferent between leasing and purchasing the technology? (Ente thousands of dollars. Round your intermediate calculation to 2 decimal places. Round you nearest whole dollar amount.) d. Suppose the manager of GD is evaluated using residual income. What is the lease payme the manager indifferent between leasing and purchasing the technology? (Enter your answ dollars. Round your final answer to the nearest whole dollar amount.) 5:33 d Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Suppose the manager of GD is evaluated using return on investment (ROI). What is the lease manager indifferent between leasing and purchasing the technology? (Enter your answer in the intermediate calculation to 2 decimal places. Round your final answer to the nearest Iwhole doll Lease payment 02-1518 D). Will she prefer to lease or purchase of GD is evaluated using residual income. Will she prefer to lease or purchase the technology? (Enter your answer in thousands of dollars.) C. Suppose the manager of GD is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? (Enter your answer in thousands of dollars. Round your intermediate calculation to 2 decimal places. Round your final answer to the nearest whole dollar amount.) d. Suppose the manager of GD is evaluated using residual income. What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? (Enter your answer in thousands of dollars. Round your final answer to the nearest whole dollar amount.) ipped TOOK Complete this question by entering your answers in the tabs below. Required A Required B Required Required Suppose the manager of GD evaluated using residual income. What is the lease payment that would make the manas Indifferent between leasing and purchasing the technology? (Enter your answer in thousands of dollars. Round your fina answer to the nearest whole dollar amount) Lensa payment