Business, 03.12.2019 06:31, murillokiara0kiki

Suppose you are contemplating the purchase of a commercial lawn mower at a cost of $10,000. the expected lifetime of the machine is three years. you can lease the asset to a local business for $4,000 annually (payable at the end of each year) for three years. the lessee is responsible for the upkeep and maintenance of the machine during the three-year period.

if you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking?
yes
no

is the project profitable at an interest rate of 12 percent? provide calculations in support of your answer.
yes
no

Answers: 1

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Suppose you are contemplating the purchase of a commercial lawn mower at a cost of $10,000. the expe...