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The construction company you are working has tasked you with recommended if the company should buy some equipment for $70000 or lease it for $5100
The construction company you are working has tasked you with recommended if the company should buy some equipment for $70000 or lease it for $5100 per month. In either case, the equipment replaced in 2 years. The salvage value of the equipment after 2 years is $11000. Note - lease payments are made at the beginning of the period. Determine the: Questions for a) net present cost of the lease option, if the minimum attractive rate of return (MARR) is 6% b) net present cost of the buy option, if the MARR is 6% c) net present cost (NPC) of the lease option minus the NPC of the buy option, if the MARR is 6% d) equivalent uniform annual cost (EUAC) of the lease option minus the EUAC of the buy option, if the MARR is 6% e) monthly interest rate that would make the buy and lease option equivalent f) nominal annual interest rate that would make the buy and lease option equivalent g) effective annual interest rate that would make the buy and lease option equivalent The construction company you are working has tasked you with recommended if the company should buy some equipment for $70000 or lease it for $5100 per month. In either case, the equipment replaced in 2 years. The salvage value of the equipment after 2 years is $11000. Note - lease payments are made at the beginning of the period. Determine the: Questions for a) net present cost of the lease option, if the minimum attractive rate of return (MARR) is 6% b) net present cost of the buy option, if the MARR is 6% c) net present cost (NPC) of the lease option minus the NPC of the buy option, if the MARR is 6% d) equivalent uniform annual cost (EUAC) of the lease option minus the EUAC of the buy option, if the MARR is 6% e) monthly interest rate that would make the buy and lease option equivalent f) nominal annual interest rate that would make the buy and lease option equivalent g) effective annual interest rate that would make the buy and lease option equivalent
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