Which contractor should sharon use

Assignment Help Finance Basics
Reference no: EM131846399

Sharon Inc., a manufacturer of snowmobiles has detected asbestos, a hazardous material , in the insulation of its factory. A complete strip and repair job will have to be done at a considerable cost. Two bids for the job have been obtained. Doust construction inc will do the work for 120,000. With a 20,000 down payment. Doust Construction will finance the balance over 6 years at 10%, requiring Sharon to make six annual payments. Chamberlain Inc. will do the job for 122,500 and will finance the entire amount at 6%, requiring Sharon to make six annual payments. Sharons best available use of the money to do the strip and repair job is 8 percent. Which contractor should sharon's use?

Reference no: EM131846399

Questions Cloud

Theoretical approaches to reinforcement developed : Compare and contrast the theoretical approaches to reinforcement developed by Edward Thorndike and Edwin Guthrie. From the perspective of Thorndike
Firm required rate of return : Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted payback period (DPB) for each of the following projects
Company preferred stock at december : Are there any dividends in arrears on the company's preferred stock at December 31, 2018?
Does this investment fulfill your requirements : Your investment advisor offers you an investment opportunity in which you will pay $1,920.42 today in exchange for a CF of $1,000 at EoYr1
Which contractor should sharon use : Sharons best available use of the money to do the strip and repair job is 8 percent. Which contractor should sharon's use?
How drug policies affect joes circumstances : Post an explanation of how drug policies affect Joe's circumstances, as described in the case study.
Cash dividends or stock dividends : Discuss your preference for either cash dividends or stock dividends, and support your position with real-life examples of the advantage of your preference.
What is their legal standing with the us government : Where are they located in the U.S. today? Were they forcibly removed from their ancestral lands? How? Do they have a reservation today?
Define primary ways in which statistic or authority are used : Determine the primary ways in which statistics or authority are used in your current position in developing persuasive arguments, and provide examples.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the new equilibrium price of the stock

A common stock currently has a beta of 1.7, the risk-free rate is 7% annually, and the market return is 12% annually. The stock is expected to generate per-share benefits of $6.70 during the coming period. A pending lawsuit has just been dismissed an..

  Explain how inflation affects the capital structure decision

Explain how inflation affects the capital structure decision. Does inflation affect the capital structure choice differently for different firms?

  What is the new equity value of tyler on its balance sheet

Using fair value accounting for goodwill, under FAS 141R, determine the amount of goodwill that "the acquiring company" enters on its balance sheet in the following situation.

  What are the present values of the relevant investment cash

Assume the appropriate discount rate is 9.6 percent. What are the present values of the relevant investment cash flows?

  Analysis and evaluation of international investments

International investment is a prudent part of any investment portfolio. International investment helps to diversify the investment portfolio. Although, international investments are beneficial, they are not risk free.

  Ibm corporation is selling at 4013 per share and call

ibm corporation is selling at 40.13 per share and call options begin trading with many different strike prices and

  The income statement

Prior period adjustments are accounting changes that should be accounted for in comprehensive income on the income statement of the period of change.

  Distributes several varieties of potato chips

Happy Chips Inc. currently manufactures and distributes several varieties of potato chips to different types of retail accounts:

  Press release indicating that sales will not be as high

The SEC is trying to get companies to notify the investment community more quickly when a “material change” will affect their forthcoming financial results. In what sense might a financial manager be seen as “more ethical” if he or she follows this d..

  How much and how frequently they pay

Compare and contrast their policies on how much and how frequently they pay. Have they changed their policies in the recent past? Can you tell from their financial statements how their dividends have varied over the past few years?

  How do you analyse a firm''s dividend policy

1) How do you analyse a firm's dividend policy based on increasing eps and dps? (If both eps and dps are increasing. )2) Which is a better way of financing a company's investment? Borrow money , issue bonds or reducing dividend payout? Could you give..

  How much larger or smaller is the bank loan payment

Sutton can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment? Note: Subtract the loan payment from the lease payment.

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