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PART C Delford Industries needs a new warehouse for its growing business in New Jersey. The CFO has decided to lease the warehouse for 7
| PART C | ||||
| Delford Industries needs a new warehouse for its growing business in New Jersey. | ||||
| The CFO has decided to lease the warehouse for | 7 | years. | ||
| They have identified two warehouses that meet their needs: one in Edison and the other | ||||
| in Rutherford. | ||||
| Proposed lease terms for the two warehouses are as shown below. | ||||
| ($s in 000s) | ||||
| Payment | Annual | |||
| (Year 0) | Lease | |||
| Edison | $325 | $1,235 | ||
| Rutherford | $925 | $1,125 | ||
| Delford has adequate cash to make either of the Year 0 payments. | ||||
Which should the CFO choose? Explain your answer
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
