Compute the price of the machine

Assignment Help Business Economics

Reference no: EM1320564

Q. Dundee Corporation is planning to lease a machine for the next five years for an annual lease payment of $2500 paid in advance, plus an initial fee of $1000. There is a one-year delay for the tax benefits of lease payments also the fee. Dundee may buy the machine, depreciate it fully over the next five years also then sell it for 15% of the purchase price. Dundee can borrow the money at 9% interest rate to finance the purchase also its tax rate is 30%. Compute the price of the machine, which will make purchasing or leasing to be equally costly.

Reference no: EM1320564

Questions Cloud

Using your understanding of shifts in supply also demand : Using your understanding of shifts in supply also demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part.

Find the median of the data : Find is the median of the data

Determining probability for choosing item : If one item is chosen at random, determine these probabilities. It is a TV

The ultimate result of this one-shot : The ultimate result of this one-shot, simultaneous-move game depends upon the choices made by both competitors.

Compute the price of the machine : Compute the price of the machine, which will make purchasing or leasing to be equally costly.

What are three contingent environmental resource evaluation : Illustrate what are the three contingent environmental resource evaluation methods also Illustrate what is their significance.

Emphasis on vacation icons : Jose runs a gallery which specializes in neon art with an emphasis on vacation icons like flamingos, dolphins, and palm trees.

Assume that an english worker can produce : Assume that an English worker can produce 50 bottles whisky every hour or 1 sweater every hour.

Determining probability that employee smokes : If employee is chosen at random, determine these probabilities.The Employee smokes, The employees smokes, given that he/she graduated from college.

User Account

All Pages