YEAR 1 YEAR 2 YEAR 3 Operating expenses for year P36.00 P40.00 P43.00 Trade in value at the end of the P250,000 P420,000 P350,000 year

Q: Your company leases cars to other companies for revenue. You intend to invest BD13,000 this year to…

A: a. To determine which cars to purchase based on NPV, we need to calculate the NPV for each car and…

Q: 03) In order to replace a present facility, a company is to deposit $11000 at the end of every year…

A: Future Value is the value that is resultant of the compounding of the fuure cash flows at a…

Q: An investor is considering purchasing an office building for $5 million with the intention of…

A: To calculate the discounted payback period, we need to find the point in time when the present value…

Q: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…

A: Here, At the end of year 2 , maintenance cost is P60,000 From Year 3 to Year 7, Maintenance Cost is…

Q: parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: The question is based on the concept of Present value and Annuity in Financial Management.

Q: A vacant lot is purchased for $20,000. After 5 years the lot is to be offered for sale. If the buyer…

A: The question is based on the concept of calculation of future value of cash flow at required rate of…

Q: Martin's Auto Repair Service is considering the purchase of a new piece of equipment that costs…

A: Step 1: Given Value for Calculation Purchase Price of Equipment = $5706Annual Additional Revenue =…

Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an…

A:

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: First year revenue (R) = P 22000 Growth rate (g) = 5% r = 8% Let the equivalent revenue = A

Q: A firm can lease a truck for 4 years at a cost of $38,000 annually. It can instead buy a truck at a…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: For a project lasting for 7 years, there are two expenses: the first one which is paid at the end of…

A: The question is to calculate present value of expected cash flows in form of annuity with growth…

Q: A property is expected to have net operating income during the first year of $50,000, which is…

A: For the calculation of the estimated value of the property present value of the Annual cash flow…

Q: Consider the O&M costs on a piece of equipment until the end of the eighth year. You purchased a…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: As an alternative to the used automobile , the student can purchase a new “utility” model for…

A: Economic benefit is a income statistic that measures how a lot coins a product's sale generates as…

Q: The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000,000. The owner…

A: For accounting purposes, when an investor needs to make an investment in any project or asset and…

Q: A new punching machine will cost $4,246. At the end of its 10 years useful life, the machine can be…

A: Answer:-  Present value meaning:- The current value of a future sum of money or cash flows at a…

Q: Salem Co. has a year-end of December 31 and they are evaluating the cash flows of some potential…

A: Here,Rental Payment (PMT) is $15,000Time Period (n) is 5 yearsInterest Rate (r) is 7%Payment Date is…

Q: transport company sets aside funds to maintain its trucks. It anticipates spending $3,000 on repairs…

A: In this we have to calculate present value of expenses and than find out equivalent annual expenses.

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: A new punching machine will cost $4,593. At the end of its 10 years useful life, the machine can be…

A: NPV is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: A person is planning to purchase a car. A new car is costing rupees 3 lacs. The resale value of the…

A: Fixed assetsThe assets available in the company for the use of operating activities and used for a…

Q: A machine has a useful life of 10 years. It requires a semi- annual operating cost of $3,000 for the…

A: Useful life = 10 yearsSemi-annual operating cost = $3000Number of years = 4Growth rate = 6%Interest…

Q: ng engineer purchased a new car on an instalment basis with an amount of P 275, 000 as down payment.…

A: Monthly payments for the loan carry the payment for interest and payment for the loan amount also…

Q: wo plans are available for a company to obtain automobiles for its salesmen. How pe driven each year…

A: In this both options are equal in term of cost and mileage.

Q: A manufacturer needs to borrow money to purchase a building. The purchase price of the building is…

A: given, purchase price = $1.5 million = 1500,000 downpayment = $300,000 rate =4.85% n =20 years

Q: An item costs $12000. The business will need to replace this item every S years at the same cost. If…

A: Capitalised cost is the present value of all costs associated with owning and maintaining the item…

Q: A car can be purchased for P650,000 when new. There follows a schedule of annual operating expenses…

A: Operating expenses are those expenses which are incurred for the purpose of operating an asset.…

Q: One Company has offered a small company two method by which to pay for some needed roof repairs.…

A: Method 1 Payment = 16500   Method 2 Payment = 26400 Time Period of payment = 2 years Interest Rate =…

Q: 6. Contracting company plans to update its equipment so that its trucks are replaced after five…

A: As per the concept of time value of money the worth of money changes with passage of time because…

Q: JPX's decides to value a property based on its expected net after-tax monthly cash flow of $7,400,…

A: Prepetuity In the financial system, perpetuity refers to a circumstance in which a stream of cash…

Q: Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the…

A: YearAnnual net after-tax cash…

Q: A general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years…

A: MACRS is modified accelerated cost recovery system, in which depending on the assets recovery…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.