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A small strip-mining coal company is trying to decide whether it should purchase or lease a new clamshell. If purchased, the “shell” will cost $142,500 and is expected to have a $47,500 salvage value after 6 years. Alternatively, the company can lease a clamshell for only $15,000 per year, but the lease payment will have to be made at the beginning of each year. If the clamshell is purchased, it will be leased to other strip-mining companies whenever possible, an activity that is expected to yield revenues of $11,000 per year. If the company’s MARR is 13% per year, should the clamshell be purchased or leased on the basis of a future worth analysis? Assume the annual M&O cost is the same for both options.
The future worth when purchased is $ _______.
The future worth when leased is $______ .
The clamshell should be __________ (Click to select) purchased leased.
Great Wall Pizzeria issued 11-year bonds one year ago at a coupon rate of 6.8 percent. If the YTM on these bonds is 9 percent, what is the current bond price?
Last year the return on total assets in Jeffrey Company was 9.5%. The total assets were 1.9 million at the beginning of the year and 2.1 million at the end of the year. The tax rate was 30%, interest expense totalled $100 thousand, and sales were $4...
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FedEx Corp. stock ended the previous year at $126.19 per share. It paid a $2.00 per share dividend last year. It ended last year at $129.49. If you owned 490 shares of FedEx, what was your dollar return and percent return?
how much of this judgment would the insurance cover?
You have recently discovered a new strain of grain that is higher in protein than quinoa (a grain that is very high in protein). Although you like the taste of this grain, it has a slightly bitter taste that you are not sure everyone will like. The ..
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