subject
Business, 24.10.2019 17:43 Amrinderkhattra

Kiddy toy corporation needs to acquire the use of a machine to be used in its manufacturing process. the machine needed is manufactured by lollie corp. the machine can be used for 10 years and then sold for $27,000 at the end of its useful life. lollie has presented kiddy with the following options: (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) 1.buy machine. the machine could be purchased for $177,000 in cash. all maintenance and insurance costs, which approximate $22,000 per year, would be paid by kiddy. 2.lease machine. the machine could be leased for a 10-year period for an annual lease payment of $42,000 with the first payment due immediately. all maintenance and insurance costs will be paid for by the lollie corp. and the machine will revert back to lollie at the end of the 10-year period. required: assuming that a 10% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, find the present value for the following options. ignore income tax considerations. determine which option kiddy should choose. (negative amounts should be indicated by a minus sign. round your final answers to nearest whole dollar amount.)

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 22:00
Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.
Answers: 2
question
Business, 22.06.2019 05:10
Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp
Answers: 2
question
Business, 22.06.2019 10:20
The following information is for alex corp: product x: revenue $12.00 variable cost $4.50 product y: revenue $44.50 variable cost $9.50 total fixed costs $75,000 what is the breakeven point assuming the sales mix consists of two units of product x and one unit of product y?
Answers: 3
question
Business, 22.06.2019 16:30
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
Answers: 3
You know the right answer?
Kiddy toy corporation needs to acquire the use of a machine to be used in its manufacturing process....
Questions
question
Mathematics, 05.12.2021 14:00
question
Mathematics, 05.12.2021 14:00
question
Mathematics, 05.12.2021 14:00
question
English, 05.12.2021 14:00
question
Mathematics, 05.12.2021 14:00
question
Social Studies, 05.12.2021 14:00
Questions on the website: 13722367