Find which option is more suitable for the company

Reference no: EM13256674

Casso limited has an option to purchase new car for the use froma bank on loan for Rs. 100,000 with 16% interest payable annually and the principal is repayable in full at the end of 4 years.Alternatively, the car could be leased for 4 years, with thefollowing terms:

• Down payment Rs. 22,000

• Four annual payments Rs. 25,000

• Fair value of the asset Rs. 100,000

• Implicit rate of interest 10%

• Rental is to be paid at the beginning of the year.

Required:

Find which option is more suitable for the company.

Reference no: EM13256674

Questions Cloud

Define the set of solutions based on the movement of solvent : Classify the set of solutions based on the movement of solvent from the first solution listed to the second solution listed as osmosis or reverse osmosis.

Question regarding the boswell electric : Boswell Electric prepared the following condensed income statements for two successive years:

Find the induced emf and the armature current of generator : In a 120V compound generator, the resistances of the armature shunt and series windings are 0.06 ohm, 25 Ohm, and 0.04 Ohm respectively. The load current is 100A at 120V, find the induced EMF and the armature current of the generator.

Practical in the busy lives of city dwellers : Identify any aspects of wu wei that would be practical in the busy lives of city dwellers, especially those living in the West.

Find which option is more suitable for the company : Casso limited has an option to purchase new car for the use froma bank on loan for Rs. 100,000 with 16% interest payable. Find which option is more suitable for the company.

What recommendation would you make to management : Management is considering dropping product lines A and B.If 50% of the fixed costs for dropped products could be avoided, what recommendation would you make to management? Quantify you answer.

Determine the total armature power developed when working : A 25KW, 250V dc shunt generator has armature and field resistances of 0.06 ohm and 100 ohm respectively, determine the total armature power developed when working (1) as a generator delivering 25KW output and (2) as a motor taking 25KW

What you are going to wear as a result : Write a conversation between you and a friend in which you converse about what the weather is like and what you are going to wear as a result of the weather conditions.

Define physical separation of crude petroleum into fractions : The physical separation of crude petroleum into fractions is based on boiling point differences among components present

User Account

All Pages