Question 41 A Young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office The cost of the Xerox machine is $15,000 The annual maintenance cost is $750 The expected annual revenue from photocopying is $5500 If he decides to lease the machine the annual cost is $4000 including maintenance The Xerox machine becomes obsolete after five years if he buys Assume that funds have to be borrowed at an interest rate of 15 Calculate the Net Present value (NPV) if he buys the Xerox machine ( Enter your answer without the dollar sign) Relevant Formula (A F, i , n) i (1 i) n 1 (P A, i ,n) (1 i) n 1 i(1 i) n (F P, i n) (1 i) n Question 42 A Young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office The cost of the Xerox machine is $15,000 The annual maintenance cost is $750 The expected annual revenue from photocopying is $5500 If he decides to lease the machine the annual cost is $4000 including maintenance The Xerox machine becomes obsolete after five years if he buys Assume that funds have to be borrowed at an interest rate of 15 Calculate the Net Present value (NPV) if he leases the Xerox machine (Enter your answer without the dollar sign) Relevant Formula (A F, i , n) i (1 i) n 1 (P A, i ,n) (1 i) n 1 i(1 i) n (F P, i n) (1 i) n

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Question 41 A Young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office. The cost of the Xerox machine is

Question 41

A Young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office. The cost of the Xerox machine is $15,000. The annual maintenance cost is $750. The expected annual revenue from photocopying is $5500. If he decides to lease the machine the annual cost is $4000 including maintenance. The Xerox machine becomes obsolete after five years if he buys. Assume that funds have to be borrowed at an interest rate of 15%.Calculate the Net Present value (NPV) if he buys the Xerox machine.( Enter your answer without the dollar sign)

Relevant Formula (A/F, i%, n)= i/(1+i)ⁿ 1 (P/A, i%,n) = (1+i)ⁿ 1/ i(1+i)ⁿ (F/P, i%. n) = (1 + i)ⁿ

Question 42

A Young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office. The cost of the Xerox machine is $15,000. The annual maintenance cost is $750. The expected annual revenue from photocopying is $5500. If he decides to lease the machine the annual cost is $4000 including maintenance. The Xerox machine becomes obsolete after five years if he buys. Assume that funds have to be borrowed at an interest rate of 15%.Calculate the Net Present value (NPV) if he leases the Xerox machine. (Enter your answer without the dollar sign)

Relevant Formula (A/F, i%, n)= i/(1+i)ⁿ 1 (P/A, i%,n) = (1+i)ⁿ 1/ i(1+i)ⁿ (F/P, i%. n) = (1 + i)ⁿ