Share Comments A BUK 341 Final Four.docx. Penerted View Send to this Fic H Insert Draw Design Layout References Mailings Review View Help PROTECTED VIEW Be careful files from the Internet can contain sinutes. Unless you need to edit it's carter to stay in Protected View Enable Edung ATTENTION!!! There are 4 questions in 2 pages Question 1) Nascar Company has two alternatives for a new truck investment: Buy or lease. ria: ! The purchasing cost of the track i 230.000 dollara The economic life will be five years and at the end fifth year the truck will have a salvage value, 40 000 dolu 'PIN RAISr : 1.year 10.000 dollars 2 year 15.000 3 year 20 000 4 year 25.000 S.year 28.000 Torsiacarine Lame period. 5 years Annual lease payments: 60.000 dollars (payments will be made at the beginning of each year) Also, at the beginning of contract period Nascar Co. must pay a deposit, 20.000 dollars. This deposit amount will be refunded at the end of fifth year. According to the leasing contract all repair and insurance expenses are under the responsability of , Make your decision according to Net Present Value Method. (Assume the discount rate of the company is 12%) Praw value of dollar Period Discount rare (129) i 0.893 2 0.797 3 4 10.00 5 0.567 Papel of 2 16 ul 600 Crocus 7104 m AA40 ESP D El 2 1836 25/1/201 F Search Share Comments A BUX 341 Final.docx - Protected View - Send to this Fic H Insert Draw Design Layout References Malings Review View Help PROTECTED VIEW Be carefulfiles from the Internet can contain vinices. Unless you need to edit it's stier to stay in Protected View Question 1) Enable Idling Nascar Company has two alternatives for a new track investment: Buy or lease. Buying opron The purchasing cost of the truck is 230.000 dollars. The economic life will be five years and at the end fifth year the truck will have a salvage value, 40.000 dollars Repar and nace CONS 1 year 10.000 dollars 2.year 15.000 3.vear 20.000 4 year 25.000 5.year 28.000 Leasing option: Lease period: 3 years Annual lease payments: 60.000 dollars (payments will be made at the beginning of each year) Also, at the beginning of contract period Nascar Co. nust pay a deposit, 20.000 dollars. This deposit amount will be refunded at the end of fifth year. According to the leasing contract all repair and insurance expenses are under the responsibility of leasing company . Make your decision according to Net Present Value Method. (Assume the discount rate of the company is 1296) Present value of dollar Period Discount rate (1295) 1 2 0,797 3 0,712 + 0.636 5 s 0,567 0.897 1 Pape 1 of 2 600 words Crocus 70% D EI 2 996 99 AA40 ESP 1822 26/10/2001 F
