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

We mentioned in section 542 that it is possible to deduce

We mentioned in Section 5.4.2 that it is possible to deduce, from the LR state on the parsing stack, what grammar symbol is represented by the state. How would we discover this information? Rewrite the following SDT:

Go to wwwirsgov and click individuals to answer the

Go to www.irs.gov and click "Individuals" to answer the following questions: a. Under "1040 Central," what is the 2012 income limit that may entitle a taxpayer to the earned income tax credit? b. What is the maximum amou ...

1 what is a standby commitment when and why is it used2

1. What is a standby commitment? When and why is it used? 2. What is a mini-perm or bullet loan? When and why is this type of loan used? 3. Third-party lenders sometimes provide gap financing for project developments. Wh ...

Microsoft has a bond outstanding symbol msftgb with a 420

Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Use a face value o ...

An asset management firm has a 300 million portfolio

An asset management firm has a $300 million portfolio consisting of all stock. It would like to divest 10 percent of its stock and invest in bonds. It considers the possibility of synthetically selling some stock using e ...

The scores on an aptitude test required for entry into a

The scores on an aptitude test required for entry into a certain job position have a mean at most 500. If a random sample of 36 applicants have a mean of 546 and a standard deviation of 120, is there evidence that their ...

Wilsons antiques is considering a project that has an

Wilson's Antiques is considering a project that has an initial cost today of $10,000. The project has a two-year life with cash inflows of $6,500 a year. Should Wilson's decide to wait one year to commence this project, ...

1 why is variance reduction important to logistical

1. Why is variance reduction important to logistical integration? Illustrate in terms of logistical operations. 2. What is the meaning of the phrase cradle-to-cradle logistics? Discuss the operational differences of orig ...

1 what information is contained in each of the

1. What information is contained in each of the supplementary sections of the research report? 2. How are the levels of the headings of a research report determined? 3. Summarize the writing and stylistic goals that can ...

What is a pro forma financial statement what is economic

What is a pro forma financial statement? What is economic value added and why do financial managers care about this? Explain what is meant by a balanced scorecard ? If companies in an industry have significant profits an ...

  • 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