Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Engineers Ltd is in the business of manufacturing nut bolts. Some more product lines are being planned to be added to the existing system. The machinery required may be taken on lease. The cost of the machine is Rs 20,00,000 having a useful life of 5 years with the salvage value of Rs 4,00,000 (consider short-term capital loss/gain for the Income Tax). The full purchase value of the machine can be financed by a bank loan at the rate of 20% interest repayable in five equal installments, falling due at the end of each year. Alternatively, the machine can be procured on a 5 years lease, year-end lease rentals being Rs 12,00,000 per annum. The company follows the written-down value method of depreciation at the rate of 25 percent. The company's tax rate is 35 percent and the cost of capital is 14 percent.
Problem (i) Advise the company which option it should choose-lease or borrow.
Problem (ii) Assess the proposal from the lessor's point of view examining whether leasing the machine is financially viable at 14 percent cost of capital. Detailed working notes should be given.
The current ratio for a company with current assets of $70,000, quick assets of $30,000, net assets of $150,000 current liabilities of $50,000 and net sales of $80,000 would be:
Other vendors could provide the fairly straightforward installation and service. What are Company A's performance obligations in this contract?
Which of the following audit procedures would an auditor most likely perform to test controls relating to management's valuation assertion for accounts receivable?
What is the maximum monthly interest rate that David can accept to keep his monthly payments to no more than $500 per month?
Problem - Use the accounts below for Stanley Black and Decker to prepare Balance Sheet at December 31, 2018. ($ millions)
journal entries to record sales and cost of saleson 317 janets spa sold two of the plush robes from her inventory to
What kind of loan would you offer to a poultry farmer who wants to build his poultry housing for broilers? What would be the appropriate term or maturity?
Assume you are working on a complex consolidation team assigned to apply the equity method of accounting. You have reached an impassable dispute with another team member working on this project relating to the proper way to apply the equity method of..
Salter Inc.'s unit selling price is $50, the unit variable cost are $35, fixed costs are $125000 and current sales are 10000. How much will opereting income change if sales incresed by 5000 units?
Which is the most likely method for Company QQ to fund its new product line? QQ needs outside funding to launch a new product line.
Consider a project of Samsung as: What is the NPV of this project to an all equity firm
there are four methods of inventory costing lifo fifo direct cost and average cost. why do you believe we have four? do
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd