(Answered) Question the company you work for is considering acquiring

Statistics

Question: The company you work for is considering acquiring several of the latest generation desktop computers for use in an office. The company expects the equipment to have a useful life of three years. The finance director has asked you to recommend whether the equipment should be purchased outright or whether it should be leased from the supplier. If the equipment is purchased outright the total cost will be £4200. At the end of the three years it is estimated that the equipment will have a scrap value of £500. If the machine is leased then the rental charge will be £1660 per annum payable at the start of each year. The company's cost of capital is currently 10.5 per cent per annum.

Draft a report advising the company whether it should purchase or lease the equipment and comment on any other factors the company may want to consider before making a decision.

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92563268
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

1 the consultants estimated the required rate of return was

1. The consultants estimated the required rate of return was 13.635% 2. The Beta of Poorside's equity was 0.7, the market return was 20% and the risk-free rate was 12% 3. The interest rate on debentures was 13% per annum ...

According to bottledwaterorg per capita consumption of

According to bottledwater.org, per capita consumption of bottled water in the U.S. in 2012 was reported to be 30.8 gallons. Assume that the amount of bottled water consumed per person is Normally distributed with mean 30 ...

In order to fund her retirement helen needs her portfolio

In order to fund her retirement, Helen needs her portfolio to have an expected return of 13.8 percent per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 perce ...

Your companys revenues were 3 million this year you paid

Your company's revenues were $3 million this year. You paid out $500,000 in salaries and your only other cash outflow was the purchase of a piece of construction equipment for $1 million that is to be depreciated to a ze ...

On the production line the company finds that 997 of

On the production line the company finds that 99.7% of products are made correctly. You are responsible for quality control and take batches of 30 products from the line and test them. What number of the 30 being incorre ...

Rework problem 25 from section 41 of your text involving a

Rework problem 25 from section 4.1 of your text involving a car saleswoman. Assume that showing a car is a Bernoulli trial, and each time she shows a car, there is a probability of 0.05 that the customer will buy the car ...

A student is to be selected randomly from a group of

A student is to be selected randomly from a group of students. For each classification of freshman and sophomore, there is a math major, an art major, and a biology major. The probability of each individual being selecte ...

If we believe the percent to be 75 how many police officers

If we believe the percent to be 75%, how many police officers must we survey to estimate the proportion of officers who graduated from a police academy if we want to ensure we can be 90% we are within 2% of the true prop ...

What is the minimum cash flow that could be received at the

What is the minimum cash flow that could be received at the end of year three to make the following project "acceptable?" Initial cost = $63,000; cash flows at end of years one and two = $35,000; opportunity cost of capi ...

The probability of someone ordering the daily special is 52

The probability of someone ordering the daily special is 52%. If the restaurant expected 96 people for lunch, how many would you expect to order the daily special?

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

Recent Questions

Ask Statistics and Probability Expert