What are the noneconomic factors

Reference no: EM132165332

Question: The lease of a computer system will cost $150 per month for a 2-year commitment. If the lease is renewed, it should cost less on each contract. The estimated price if renewed 2 years hence is $120 per month and $90 per month if renewed again in year 4. Buying the computer system will cost $7000, and it will be worth $1500 in year 6, which is the horizon for this problem.

In deciding between leasing and buying the computer, what is the incremental rate of return? If the MARR is a nominal 12%, should the computer be leased or purchased? What are the noneconomic factors, and are they likely to favor leasing or buying?

Reference no: EM132165332

Questions Cloud

What does that land offer that your current home does not : While each requires a long and treacherous journey, which area do you suggest? What does that land offer that your current home does not?

Compute the depreciation schedule for the asset : A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end of its 6-year depreciable life. Compute the depreciation schedule.

Why did the league of nations effort by wilsons fail : Why did the league of nations effort by wilson's fail to gain united states support for membership .

Create two virtual machines : You should give this Virtual Machine an A record with the name server1.You should also create a A record for server2 - install bind on Virtual Machine

What are the noneconomic factors : The lease of a computer system will cost $150 per month for a 2-year commitment. If the lease is renewed, it should cost less on each contract.

Write a five-page analysis of the american civil war : Analyze the concept that the war was one between industry and agriculture, with industry coming out the winner.

What are comparable eacs for the two alternatives : If you drive 10,000 miles per year, which tire should you buy? Tire A costs $65 and should last 40,000 miles. Tire B costs $85 and should last 60,000 miles.

Should the route be purchased : West north Airlines may purchase a New York to London route from Divided Airlines for $1.5M. The new route should generate income of $1.2M.

What was it and how did it manifest at the different stages : Do you think it has something to do with how blacks and whites relate to the ceremonial versus substantive rules of the Jim Crow culture?

User Account

All Pages