Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Most businesses replace their computers every 2 to 3 years. Suppose that a computer costs= $2000 and that it completely depreciates in three years, at which point it has no resale value whatsoever and is thrown away.

a) If interest rate for financing equipment is equal to i, illustrate how to find out the minimum annual cash flow which a computer should make to be value the purchase. Your answer will depend on i.

b) Assume the computer didn’t completely depreciate but still had $250 value at the time it was replaced. Illustrate how you would adjust computations given in your answer to part a.

c) What if financing can only be had at a 10% interest rate? Compute the minimum cash flow computer should make to be worth purchase using your answer to part a.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915331
  • Price:- $18

Guranteed 24 Hours Delivery, In Price:- $18

Have any Question? 


Related Questions in Basic Finance

If a companys use of debt financing increases as compared

If a company's use of debt financing increases, as compared to equity financing, what would you expect to find in terms of a change in return on equity if the company's return on assets remains the same? If a company has ...

Why are the up and down parameters adjusted when the number

Why are the up and down parameters adjusted when the number of periods is extended? Recall that in introducing the binomial model, we illustrated one- and two-period examples, but we did not adjust the parameters. What i ...

Find two variables that you think should be either

Find two variables that you think should be either positively or negatively correlated. Measure these two variables in a sample of participants (for instance, your classmates). Calculate the Pearson correlation coefficie ...

Budgetsmith manufacturing inc has asked for your assistance

Budget Smith Manufacturing, Inc. has asked for your assistance in preparing a budget for next year's operations. Take a few moments to consider where you would begin the budgeting process.What types of information do you ...

A common stock currently has a beta of 17 the risk-free

A common stock currently has a beta of 1.7, the risk-free rate is 7 percent annually, andthe market return is 12 percent annually. The stock is expected to generate a constant dividend of $6.70 per share. A pending lawsu ...

The completed research paper should be at least 15 pages in

The completed research paper should be at least 15 pages in length, not including the references, and be typed using 12-point, double-spaced font. Our topic is Manager-stockholder conflicts and agency costs. The structur ...

We are going through financial crisis seven years have

We are going through financial crisis. Seven years have passed and we are still in recovery stage. Based on the analysis in the class, can you suggest and elaborate an alternative way to deal with the financial crisis?

1 speculate on why accounting standards do not mandate full

1. Speculate on why accounting standards do not mandate full financial statements in interim reports. 2. Why may comprehensive income fluctuate substantially more than net income? 3. Why can pro-forma financial informati ...

1 describe the major difference between within-subjects and

1. Describe the major difference between within-subjects and between-subjects designs. 2. Describe the advantages of the within-subjects design. 3. Describe the disadvantages of the within-subjects design. 4. Explain how ...

How would a financial manager determine optimal capital

How would a financial manager determine optimal capital structure? How this would fit in with the company's capital expenditures, growth plans and operating results?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro