{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T03:49:20-04:00", "answer_date": "2024-06-28 03:49:20", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4235354", "url": "\/study-help\/questions\/hw-4-class-exercise-the-management-of-the-alexandrov-4235354", "question_creation_date_js": "2024-06-28T03:49:20-04:00", "question_creation_date": "Jun 28, 2024 03:49 AM", "meta_title": "[Solved] HW # 4 CLASS EXERCISE The management of T | SolutionInn", "meta_description": "Answer of - HW # 4 CLASS EXERCISE The management of The Alexandrov Company decided to acquire the use of a machine to be used in i | SolutionInn", "meta_keywords": "hw,4,class,exercise,management,alexandrov,company,decided,acquire,machine,manufacturing,process", "question_title_h1": "HW # 4 CLASS EXERCISE The management of The Alexandrov Company decided to acquire the use of a machine to be used in its manufacturing", "question_title": "HW # 4 CLASS EXERCISE The management of The Alexandrov Company decided", "question_title_for_js_snippet": "HW 4 CLASS EXERCISE The management of The Alexandrov Company decided to acquire the use of a machine to be used in its manufacturing process The machine it needs is manufactured only by Chang , Incorporated The machine can be used for ten years and then sold for $10, 000 at the end of its useful life Chang's options management has presented Alexandrov with the following acquisition Lease The machine could be leased for a ten year period for an annual lease payment of $25, 000, with the first payment due on the date that the agreement is signed All maintenance and insurance costs for the machine , which are expected to be about $5, 000 per year , would be paid by Chang , and the machine would be returned to Chang at the end of the lease term Purchase The machine could be purchased for $130, 000 in cash Assuming that ( 1 ) Alexandrov and Chang will agree on a transaction on November 30 , 2010 , and ( II ) the current interest rate for Alexandrov's long term borrowing is 12 , which of the two options would be the most economically attractive to Alexandrov Prepare a formal schedule to support your decision", "question_description": "

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\"image<\/div><\/div><\/div> HW # 4 CLASS EXERCISE The management of The Alexandrov Company decided to acquire the use of a machine to be used in its manufacturing process . The machine it needs is manufactured only by Chang , Incorporated . The machine can be used for ten years and then sold for $10, 000 at the end of its useful life . Chang's options : management has presented Alexandrov with the following acquisition Lease : The machine could be leased for a ten- year period for an annual lease payment of $25, 000, with the first payment due on the date that the agreement is signed . All maintenance and insurance costs for the machine , which are expected to be about $5, 000 per year , would be paid by Chang , and the machine would be returned to Chang at the end of the lease term . Purchase : The machine could be purchased for $130, 000 in cash Assuming that ( 1 ) Alexandrov and Chang will agree on a transaction on November 30 , 2010 , and ( II ) the current interest rate for Alexandrov's long- term borrowing is 12% , which of the two options would be the most economically attractive to Alexandrov ? Prepare a formal schedule to support your decision", "transcribed_text": "", "related_book": { "title": "Global Strategy", "isbn": "0357512367, 978-0357512364", "edition": "5th Edition", "authors": "Mike W. Peng", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/649592eaa157d_32303.jpg", "uri": "\/textbooks\/global-strategy-5th-edition-9780357512364", "see_more_uri": "" }, "free_related_book": { "isbn": "1800492251", "uri": "\/textbooks\/fi-money-learn-the-hard-way-teach-the-easy-way-a-unique-guide-to-money-mindset-financial-literacy-and-financial-independence-1st-edition-978-1800492257-258971", "name": "Fi Money Learn The Hard Way Teach The Easy Way A Unique Guide To Money Mindset Financial Literacy And Financial Independence", "edition": "1st Edition" }, "question_posted": "2024-06-28 03:49:20", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/refer-to-exercise-the-practitioner-also-recorded-the-average-away", "description": "Refer to Exercise. 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