Sandia Inc. Wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straight-line basis over 10 years to a book salvage value of $0. The actual cash salvage value is expected to be $25,000 at the end of 10 years. If purchased, Sandia will incur annual maintenance expenses of $3,000. These expenses would not be incurred if the press is leased. If the press is purchased, Sandia could borrow the needed funds at an annual pre-tax interest rate of 10%. The lease rate would be $48,000 per year, payable at the beginning of each year. If Sandia has an after-tax cost of capital of 12% and a marginal tax rate of 40%, what is the net advantage to leasing? a.$65,543 b.$57,173 c.$37,737 d.$60,713

Answers

Answer 1

Answer:

c.$37,737

Explanation:

Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]

PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322

PV of Cost of Buying = $262,434

Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))

PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)

PV of Cost of Leasing = $224,697

Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing

Net advantage to leasing = $262,434 - $224,697

Net advantage to leasing = $37,737


Related Questions

If 42 of 500 people who clicked
your add bought a product online,
what would your conversion ratę
be?
A. 2.4%
B. 8.4%
C. 12.8%
D. 15.2%

Answers

Answer:

Conversion rate = 8.4%

Explanation:

Given:

Number of person clicked = 42

Total people = 500

Find:

Conversion rate

Computation:

Conversion rate = [Number of person clicked / Total people]100

Conversion rate = [42 / 500]100

Conversion rate = 8.4%

How many millions are there in 93 601 008?

Answers

Answer:

There are 93 millions in 93,601,008.

Answer:

93 million in 93,601,008

Explanation:

Hope this helps have a wonderful day! <3

Prepare a report on environmental sanitation. Include the impacts, causes, and prevention methods​

Answers

Answer and Explanation:

Environmental sanitation is carried out through a series of public investments that seek to promote environmental control in a region. The impacts of this type of sanitation must be positive, since it is through it that a community can present adequate garbage collection, treated water supply, sewage treatment, correct disposal of human waste, cleaning of public roads, basic sanitation, among others . All of this promotes human development, the well-being of the population and environmental preservation.

The causes of environmental sanitation are the need to establish social policies that promote better living conditions and that optimize the health of citizens without degrading the environment.

a family gets 300 litres of free water,January has 31 days how many free kilolitres of water did this family get in January ​

Answers

Answer:

i think its 9300

Explanation:

you just say 300l multipled by 31days and you get 9300

Select the best answer for the question
9. You start a new business selling a product that's the best of its kind on the market. In addition to
A. Good marketing
B. A large staff
C. A franchise license
D. Sales experience

Answers

Answer:

the answer is A

Explanation:

if you can't market it good then it will fail

Apple Computer maintains company headquarters in _____.

Answers

Answer:  Cupertino

Explanation: Apple Park is located 1.2 miles east of the original Apple Campus. Apple has had a presence in Cupertino since 1977, which is why the company decided to build in the area rather than move to a cheaper, distant location. The campus is also next to a contaminated site under Superfund legislation with a groundwater plume.

HELP FOR CROWN!!!
what is one thing a bank will require you to have when you ask for an auto loan?
A. keys to the car
B. proof of auto insurance
C. driver's license
D. letter of recommendation

Answers

Answer:

It is either C or D

Explanation:

Answer:

Driver's License

Which of the following does not fall into the field of marketing?
-restaurant management
-education
-e-commerce
-professional sales

Answers

Answer:

professional sales

Explanation:

sales

Gianna put $1,000 in a savings account for 18 months. The interest on the account is 3.5%.

How much will Gianna earn in interest? What amount will she have at the end of the time period?

Answers

Answer:

You will earn $52.96 in interest

You have $1,052.96 in total.

Helppp !!

Is a group of customers who share common wants and needs :

A) Market management
B) Marketing
C) Promotion
D) Product / Service

Answers

D
Hope this helps you

Which of the following would be included in the U.S. gross domestic product
(GDP) measure?

Answers

Answer:
B) The value of Toyota cars made in California

Explanation:
The question asks for something that would be included in the U.S.’s GDP. This answer is the only one that is located in the United States. The other answers are from different countries.

Gross domestic product (GDP) is a standardized measure of the value-added generated by a country's production of goods and services over a specific time period.

What is the significance of GDP?

GDP is essential since it offers information about an economy's value and performance. The rate of increase in real GDP is widely cited as an indicator of the economy's overall health.

In general, an increase in real GDP is regarded as proof that the economy is doing well.

Thus, Option B is included in US GDP.

For more information about GDP refer to the link:

https://brainly.com/question/4131508

On January 1, Salter Corporation determined that its direct materials inventory needs to contain 6,000 pounds of materials by March 31. To achieve this goal, Salter will have to use four pounds of direct materials for every pound that it purchases during the upcoming quarter. On the basis of the company's budgeted sales volume, management estimates that 5,000 pounds of direct materials need to be purchased by March 31. Determine the number of pounds in Salter's beginning direct materials inventory on January 1.

Answers

Answer: 21000

Explanation:

Direct materials inventory desired = 6,000

Purchase of direct materials budgeted = 5000

Pounds needed for production = 5000 × 4 = 20000

The number of pounds in Salter's beginning direct materials inventory on January 1 will be:

= Direct materials inventory desired + Pounds needed for production -

Purchase of direct materials budgeted

= 6000 + 20000 - 5000

= 21000 pounds

By law, an accountant must hold a CPA designation in order to
?

Answers

Answer:

The CPA designation isn't required to work in corporate accounting or for private companies. However, public accountants⁠—which are individuals working for a firm, such as Deloitte or Ernst & Young, that provides accounting and tax-related services to businesses—must hold a CPA designation.

Explanation:

Answer:

Prepare audited or reviewed financial statements.

Hope this helps :)

If the country wants to move from its current point and produce 10 more tons of food, it must produce...

O 5 more tons of clothing

O 5 fewer tons of clothing

10 more tons of clothing

O 10 fewer tons of clothing

Answers

5 fewer tons of clothing

List of the least five behaviors you feel would be behavior you feel would be considered irresponsible in the workplace. For each behavior listed, provide a detailed example/scenario to detail what makes the behavior either responsible or irresponsible.

Answers

Answer: See Explanation

Explanation:

Some of the behaviors that would be considered irresponsible in the workplace include:

1. Lateness: Every company has its working hours and it is required for the employees to adhere to the working hours and always get to work on time. Lateness is a bad habit in the workplace. For a company to achieve its goals, it's required for its workers to come to their workplace early and perform their duty well.

2. Cyberslackers: This occurs when the employees use the internet that is meant for work related activities to surf the net and browse sites that doesn't relate to their work. For example, a case whereby an employee is checking his or her social media at the workplace.

3. Lying to other employees: It is a bad behavior for an employee to lie or say something that's not true about a person in order to gain an advantage or for other person reasons Lying brings about lack of trust and disunity in the workplace.

4. Having a bad character: In an organization, it is vital for the employees to possess good characters such as being kind, caring, helpful etc. Possessing a bad character will have a negative effect on the company.

5. Theft: Employee theft is also an irresponsible behavior in the workplace. Stealing has a negative effect on the revenue of the company as it reduces the revenue such company makes. Employees should always make sure that they do not falsify information in order to gain a financial advantage or steal company's fund.

Shareholders had a good year, earning a 29% annual rate of return. The PE ratio today is 10.0 and the company just announced earnings per share of $2.50. The company has a 90% payout ratio. How much did the stock price change over the past year?

Answers

Answer:

$3.68

Explanation:

Rate of return =29%

PE ratio = 10.0

Earning per share = $2.50

P1 = PE ratio * EPS

P1= 10*2.50

P1 = $25

Payout ratio = 90%

Dividend = 2.50*90%

Dividend = $2.25

Rate of return = (P1+D1-P0)/P0

0.29= (25 + 2.25 - P0)/P0

0.29 P0 = 27.50 - P0

1.29P0 = 27.50

P0 = 27.50/1.29

P0 = $21.32

Change in stock price = $25 - $21.32

Change in stock price = $3.68

a car travelling at 36km / h accelerates uniformly acceleration final 2m / s ^2 find its velocity in 5 second ​

Answers

Answer:

v = 20 m/s

Explanation:

Given that,

Initial speed of the car, u = 36 km/h = 10 m/s

Acceleration of the car, a = 2 m/s²

We need to find the final speed of the car in 5 seconds. Let the final speed is v. So,

v = u +at

Substitute all the values,

v = 10+2(5)

= 10+10

= 20 m/s

So, the final speed of the car is 20 m/s.

FINISH THIS SENTANCE
There was this blind man, right? He Was feeling his way down the street with this stick,

Answers

when he runs into a old dog who so happens to be a dog that guides blind people.

An oligopoly is a market structure in which a large number of firms dominate the market. T or F

Answers

Answer: F

Explanation:

An oligopoly is a market structure in which a large number of firms dominate the market.

An oligopoly is a market structure in which a large number of firms dominate the market. FALSE.


What is one cost of avoiding insurance?
falling into debt if faced with a serious problem
not benefitting from insurance de bructibles
not being able to purchase a car or home
facing increased probability of accidents

Answers

Answer:

A

Explanation:

Edge

"tractor is a modern tool of agriculture".justify this statement with suitable example​

Answers

Answer:

Tractors are the king among different farm equipment. They are the main workhorse of any modern farm. They provide the power and traction necessary to mechanize agricultural tasks. ... There are different types of tractors in the market, varying in size and capacity.

Explanation:

why would you put money into a saving account

Answers

Answer:

You'd put money into a bank account to save it

Explanation:

you'd want to save it so you don't spend it yet.

Hope this helps! :)

Drag the tiles to the correct boxes to complete the pairs.
Match the different types of incomes to their sources.

Answers

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:

A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

Your office is hosting a big meeting with some of its international
clients. During the meeting, one of the clients asks numerous,
very detailed questions. She also wants to see your risk
management plan. Which of these countries is she probably
from?
O Mexico
O United States
O Germany
O Ireland

Answers

Untied states or Mexico

At the end of a long day, Sabrina, a cashier for a supermarket is counting the paper money. One of the bills falls from the cash register into the bottom of Sabrina's purse. What elements of embezzlement are present in this situation? Should Sabrina be convicted of embezzlement? Why or why not?

Answers

Answer:

It is an act of theft and conversion of property that is not her own. However it is not intentional

She should not be convicted

Explanation:

Embezzlement is defined as the intentional managemnet of.funda that are put in the care of a person. This is done in order to have a personal gain from the management.

It is when an individual engages in theft of entrusted funds.

In the given scenario although the cash fell into her bag, she did not intentionally take the money for personal gain.

As this is the main concept of embezzlement, she can't be held guilty of embezzlement

Helpppp !!!

Usually done before you introduce a new product to be successful :

A) Test marketing
B) Marketing research
C) Marketing concept
D) Marketing mix

Answers

B) Marketing Research

The markets for prostitution in Nevada and New Jersey have two important differences: 1) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and 2) customers in New Jersey face higher risks of contracting diseases from prostitutes because the illegal nature of the business makes reliable information about product quality much more costly to obtain. Given these facts, which state would you expect the price of prostitution services to be higher? Why? Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Answers

Answer:

Given these facts, which state would you expect the price of prostitution services to be higher? Why?

Since the risks associated to prostitution are higher in New Jersey, we could assume that the price for these services will be higher there. The supply curve of prostitution shift to the left, increasing the price and decreasing the quantity.

Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Since the price is higher in New Jersey, the quantity demanded will be lower. Also, the risks associated to consuming the service will shift the demand curve to the left, reducing the quantity.

A weekly report for new agents at a vacation sales company is shown in the histogram. A histogram titled Vacation Packages has number of packages sold on the x-axis and number of salespersons on the y-axis. 9 sold 1 to 2 packages; 7 sold 3 to 4; 4 sold 5 to 6; 3 sold 7 to 8; 2 sold 9 to 10; 1 sold 11 to 12; 2 sold 13 to 14; 3 sold 15 to 16. How many of the new agents sold more than 10 vacation packages?

Answers

Answer:

6 salespersons

Explanation:

A histogram shows the graphical representation of the distribution of numerical data using bars of different lengths.

From the histogram:

The number of salespersons who sold 11 - 12 packages = 1

The number of salespersons who sold 13 - 14 packages = 2

The number of salespersons who sold 15 - 16 packages = 3

Therefore the new agents who sold more than 10 vacation packages = 1 + 2 + 3 = 6 salespersons

Answer:its 6

Explanation:i took the quiz and i know the answer

Here is selected financial statement data regarding a company's property, plant, and equipment. Balance Sheet: Dec. 31, 2018 Dec. 31, 2017 Property, plant, and equipment $ 563,000 $ 294,000 Accumulated depreciation 286,000 237,000 Income Statement: 2018 Depreciation expense $ 105,000 Gain on sale of property, plant, and equipment 26,000 During the year, PPE with a book value of $23,000 were sold. In the statement of cash flows, the investing activities section should show a cash disbursement for "purchases of property, plant, and equipment" for $ _________.

Answers

Answer:

$292,000

Explanation:

price of old equipment sold = $26,000 + $23,000 = $49,000 (cash inflow)

new equipment purchased = $563,000 - $294,000 + $23,000 = $292,000 (cash outflow)

cash flow from investing activities:

cash disbursed for purchasing new equipment = ($292,000)

cash received from sale of old equipment = $49,000

net cash flow from investing activities = ($243,000)

All of these statements apply to effective decision makers except:

A. They take risks based on intuition and gut feelings
B. They are flexible and resourceful
C. They rely on personal ‘scripts’ that help them manage how to act and react
D. They recognize that the same solution may not apply to similar situations

Answers

Except for A because that’s just what makes sense
Other Questions
Your brother is going away to college, so you no longer have to share a bedroom. You decide to redecorate a wall byhanging two new posters on the wall. The wall is 14 feet wide and each poster is four feet wide. You want to place theposters on the wall so that the distance from the edge of each poster to the nearest edge of the wall is the same as thedistance between the posters, as shown in the diagram below. Determine that distance.14 Feet4 Feet4 Feet 10 points possible. answer everything completely and I will mark brainliest On August 31, the balance sheet of Bramble Veterinary Clinic showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $16,050, and Retained Earnings $650. During September, the following transactions occurred. 1. Paid $3,500 cash for accounts payable due. 2. Collected $2,050 of accounts receivable. 3. Purchased additional equipment for $2,350, paying $900 in cash and the balance on account. 4. Performed services worth $7,900, of which $2,550 is collected in cash and the balance is due in October. 5. Declared and paid a $2,250 cash dividend. 6. Paid salaries $2,100, rent for September $1,150, and advertising expense $100. 7. Incurred utilities expense for month on account $180. 8. Received $12,000 from Capital Bank on a 6-month note payable. Required:Prepare a tabular analysis of the September transactions beginning with August 31 balances. If 5 hours is 25% of the time a trip will take, how long will it take? A cycle shop sells bicycles, tricycles, and unicycles in a single color of red, blue, green, or white. Draw a tree diagram to find out how many different combinations of cycles types and colors are possible. (I need the answer before 5:30 today) Exercise 1.7.1.1. In a class of 32 students, 11 study Physics, 16 study Biology, 14 study Chemistry but4 do not study of these subjects, 5 study Physics and Biology,4 study Physics andChemistry, 7 study Biology and chemistry while 6 study chemistry only. Using n torepresent the number of students who study all three subjects.(a) Illustrate this information on a Venn diagram(6) Write an equation in terms of n.(c) By solving your equation in (6), find the number of students who study:(i) all three subjects(ii) Physics or Chemistry but not Biology {y=5x-7y=-2x+7 Solve the system by graphing. HELP ASAP PLEASE I CANT FAIL THIS OR ELSE I GOTTA DO A WHOLE LESSON :( IM ALREADY SO BEHIND!!!! 1. If You Had Three Wishes, What Would You Wish For?2. What Would You Rather Throw Away: Love Or Money?3. Whats The Most Beautiful Place Youve Ever Seen?4. What Was Your Fondest Memory Of High School?5. Whats Your Favorite TV Show?6. Whats The Strangest Thing In Your Refrigerator?7. Would You Rather Hear The Music Of Johann Sebastian Bach Played By A Barbershop Quartet, Or A Heavy Metal Band?8. Have You Ever Been To A Five Star Resort?9. What Was Your Favorite Toy Growing Up?10. Whats The Funniest Way Youve Ever Broken The Law?11. Whats Your Favorite Sports Team?12. What Talent Would You Want To Possess If You Could? How does a temperature increase cause the rate of a reaction to increase?A. It increases the kinetic energy of the molecules.B. It decreases orientation requirements of the molecules.C. It increases the equilibrium constant for the reaction.D. It decreases the activation energy of the reaction. Solve for the value of p.2 Xp=44 Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $72,000 and at the end of the month was $32,000. The cost of goods manufactured for the month was $222,000. The actual manufacturing overhead cost incurred was $61,000 and the manufacturing overhead cost applied to Work in Process was $66,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: Is the equation 5x = 7x always, sometimes, or never true? Explain. A friend says that all bacteria are harmful to people list three reasons this statement is incorrect. need help in this show working please Process performed by plants (producers) using the sun's energy to make their own food.A. Conduction B. Photosynthesis C. FissionD. Fusion Yoli survey 100 people in your school and ask them ifthely feel your school has adequate parking. Only 30%of the sample feels the school has enough parking. Ifyou have 728 students total in your school, how manywould you expect out of all the student body that feltthere was enough parking? I dont rlly understand this problem, can someone help me pls! thx :) Write the following inequality in slope-intercept form. 12x 2y 42 y 6x 21 y 6x 21 y 6x + 21 y 6x + 21 Explica fundamentando porque los indigenas creian que los sucesos catastrficos eran productos de una maldicin. Refirase a cultura, religin y organizacin politica de los INCAS