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The first picture is just the question and the second picture is what I would like answered, the 3rd picture goes with the 2nd picture,
The first picture is just the question and the second picture is what I would like answered, the 3rd picture goes with the 2nd picture, thank you.
You need a particular piece of equipment for your production process. An equipenent-leasing company has offored to lease the oquipment to you for 39 . 600 per year dy you slapn a guaranteed 5 yoar lease (the lease is paid at the end of each yoar). The company would also maintain the equipment for you as part of the lease. Alternatively, you could buy and mairtain the equipmont yourself. The cash floss from doing so are listed here. (the equipment has an economic life of 5 years). If your discount rate is 6.6%, what thould you do? The net presemt value of the loasurg alternative is $ (Round to the nearest dolar.) The net present value of the buying alternative is (Round to the nearest dollar.) What should you do? (Select ftom the drop-dewi menus.) The cost of is less, so you should the equipment. You need a particular pioce of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for 59 . Boo per year if you sign a guaranteed 5 -year lease (the fease is paid at the end of each year). The company would also maintain the equipment for you as part of the fease. Alternatively, you could buy and maimain the oquipment yourselt, The cash flows from doing so are lated here: (the equipment has an economic life of 5 yeass), if your disoourt rate is 6.8h, shat should you do? The net present value of the leaswy alfernative is $ (Found to the neatest dollat) aintain the equipment yourself. The cash flows from doing so are listed here: (the equipment has an economic life of 5 years). If yi do? he net present value of the leasing alternative is $ (Round to the nearest dollar.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) Step by Step Solution
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