An industrial engineering consulting firm signed a lease agreement for simulation software. Calculate the present worth in year O if the lease requires a payment of $10,000 now and amounts increasing by 5% per year through year 7. Use an interest rate of 6% per year. The present worth in year 0 is $|
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- An industrial engineering consulting firm signed a lease agreement for simulation software. Calculate the present worth in year 0 if the lease requires a payment of $30,000 now and amounts increasing by 5% per year through year 7. Use an interest rate of 10% per year.Imagine you leased a piece of equipment for three years. The lease required payments of $10,000 per year, due at the end of each year. Calculate the present value of each payment if the interest rate is 10%. Complete the following table: Present Value of Payment Payment $10,000 $10,000 $10,000 Year Year 1 (end of this year) Year 2 (end of next year) Year 3 (end of the following year) What is the total present value of all three payments?The company has the opportunity to purchase production equipment on lease terms. The value of the equipment is EUR 12000. The lease term is 3 years. The first installment makes up 15% of the value, the interest rate is 5.5% per annum. Calculate leasing one the amount of the payments if the lease payments are made: (a) at the end of each quarter; b) at the beginning of each month. Compile a leasing payment scheme with a quarterly payments.
- A contract has been signed to lease a building at Php. 200,000.00 per year with an annual increase of Php. 1,500.00 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 7%. What lump sum paid today would be equivalent to the 8-year lease payment plan?A contract has been signed to lease a building at P30, 000 per year with an annual increase of P1, 000 for 5 years. Payments are to be made at the end of each year from now. The prevailing interest rate is 7%. What is the lump sum paid today would be equivalent to the 5-year lease payment plan? whats the correct answer a. P130, 652.59 b. P142, 470.28 c. P137.952.69 d. P157, 609.38A firm needs some machinery which it can lease from the manufacturer for a five-year period by making lease payments of $8,000 at the end of each month. If the interest rate for the firm is 8% p.a., with monthly compounding, the present value of the lease payments is closest to: O $394,547. $380,289. $383,300. O $470,547.
- A contract has been signed to lease a building at Php 20,000 per year with an annual increase of Php1,500 for 8 years. Payment are to be made at the end of each year starting one year from now. The prevailing interest rate is 7%. What lump sum paid today would be equivalent to the 8-year lease-payment plan? a.Php147,609.377 b.Php150,609.377 c.Php160,609.377 d.Php149,609.377A manufacturer can lease a machine for 7 years at $3,000 per quarter, payable at the beginning of each quarter. Alternatively, they can purchase the machine for $78,000 and sell it for $8,700 in 7 years. The cost of capital is 6.2% compounded annually. a. What is the present value of the cost: (enter a positive value accurate to the nearest dollar) i) of the lease option? $ ii) of the purchase option? $ b. Should the manufacturer purchase or lease? O Purchase since Purchase PV is higher than Lease PV O Lease since Lease PV is higher than Purchase PV O Lease since Purchase PV is lower than Lease PV O Purchase since Lease PV is lower than Purchase PV Lease since Lease PV is lower than Purchase PV Purchase since Lease PV is higher than Purchase PV Submit QuestionCompute the monthly payments on a 3-year lease for a $29,128 car if the annual rate of depreciation is 19% and the lease's annual interest rate is 3.8%. Round your answer to the nearest dollar. Compute the interest paid on a 2-year lease for a $29,372 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.9%. Round your answer to the nearest dollar.
- Compute the interest paid on a 2-year lease for a $26,654 car if the annual rate of depreciation is 19% and the lease's annual interest rate is 4.4%. Round your answer to the nearest dollar.A contract has been signed to lease a building at P25,000 per year with an annual increase of P2,000 for 7 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 8%. What lump sum paid today would be equivalent to the 7-year lease payment plan. a.Php 158,207.684 b.Php 167,283.897 c.Php 159,256.287 d.Php 170,267.334A contract has been signed to lease a building at P200,000 per year with an annual increase of P1,500 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 7%. What is lump sum paid today would be equivalent to the 8-year lease-payment plan?