What is the net advantage to leasing

Assignment Help Business Management
Reference no: EM131702597

Pluto, Inc. is trying to decide whether to lease or buy some new equipment. The equipment costs $38,000, has a 3-year life and is worthless after the 3 years. The after-tax discount rate is 5 percent. The annual depreciation tax shield is $4,307 and the after-tax annual lease payment is $9,240. What is the net advantage to leasing.

Reference no: EM131702597

Questions Cloud

Stated rate with semi-annual compounding : What is the present value of 22 annual payments of $4111 each with the first payment being received immediately?
Create a diary for christopher columbus : Create a diary for Christopher Columbus. Your entries should span the course of his life and offer a look at the changes in fortune he experienced.
Possible advantages to corporation in voluntarily agreeing : A European labor union succeeded in organizing the workers at a facility in Germany that was owned and operated by a U.S.-headquartered and incorporated.
What do you think caused this shift in jazz from popular art : Jazz music was America's most popular radio and dance club genre from the 1920s-40s. In the 1950s, its popularity began to dwindle.
What is the net advantage to leasing : The annual depreciation tax shield is $4,307 and the after-tax annual lease payment is $9,240. What is the net advantage to leasing.
How should this lease be classified by jefferson : On December 31, 2013, Jefferson Company leased a delivery truck from Branch Motors. How should this lease be classified by Jefferson (the lessee)? Why
Value of the put option on cola company : What is the value of the put option on Cola Company with the same exercise price and maturity date?
Mobile application of engagement-based technology : Research a mobile application of engagement-based technology from a global sense.
Assess the strengths and weaknesses of divine command theory : Assess the strengths and weaknesses of Divine Command Theory. Give a strong, well-supported argument in favor of DCT for ethical decision-making.

Reviews

Write a Review

Business Management Questions & Answers

  Value of the firms operationsfiedler roofing inc had a free

value of the firms operationsfiedler roofing inc. had a free cash flow of 275000 last year. the firm is expected to

  Explain every firm is faced with the law of diminishing

Explain Every firm (and every individual and nation as well) is faced with the law of diminishing marginal returns

  What do you consider to be ethical behaviour in the light

Describes what a code of ethics/conduct/ professional behaviour is and why is it important in the work place and describes what ethics and professional conduct means to you in the workplace

  Standards for the ethical behavior

Many legal standards exist that businesses are needed to meet in order to ensure product safety. These standards tend to be well defined, and adherence is a generally accepted risk mitigation strategy.

  Organizational communication universityin any organization

organizational communication universityin any organization upward and downward flow of information is to be expected.

  Adopt an electronic health record system

What would happen if all healthcare organizations were required to adopt an electronic health record system? How would this affect efficiency, privacy, data storage, ease of record access and cost? I need a source with a citation to back up the a..

  Discuss strategic analysis decisions in the next five years

Discuss strategic analysis decisions in the next five years, What we need to watch out for in the information technology (IT) field, and how these decisions.

  Why different people need different training methods

1. Explain why different people need different training methods.

  Application of a graph in computer science

Give an example of an application of a graph in computer science. Indicate whether the graph is directed or undirected.

  Six general types of information management systems

List the six general types of information management systems, and give one logistics application to each one of the types listed. Highlight the advantages and/or disadvantages.

  Full range leadership development behaviors

Respond to the question in 300 words. How can you use Full Range leadership development behaviors to engage customers in design, product testing, enhancement ideas, using the company's internet website?

  Analyzing an organizations strengths weaknesses and growth

analyzing an organizations strengths weaknesses and growth opportunitiesthis simple self-assessment tool focuses

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd