A. Lindner Inc. is going to purchase new equipment with a price of $625,000, which the manufacturer is willing to finance, and Lindner Inc. is trying to work out a payment schedule. Due to cash flow needs elsewhere in the company, its payment budget per month is $15,000. After 36 months, it has the ability to add a balloon payment of up to $42,500; however, the manufacturer will only allow a balloon payment with its last monthly payment. Also, it will allow Lindner Inc. to make smaller additional principal payments, say $1,000 every month from the 1st month. The additional principal amount must be the same amount each month other than with the last payment, when the company can make the large balloon payment. Lindner Inc. has the choice to finance for 36, 48 or 60 months, at an annual interest rate of 5%. But Lindner Inc. wants to pay off the loan as quickly as possible. Required:

a. What length of financing does Lindner Inc. choose?
b. What is the normal monthly required payment?
c. What is the earliest month in which the company can pay off the loan (meaning, in which month does the final payment occur)?
d. What is the amount of the balloon payment?
e. What is the total interest paid?

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

"in my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said wim niewindt, managing director of antilles refining, n. v., of aruba. "at a price of $21 per drum, we would be paying $4.70 less than it costs us to manufacture the drums in our own plant. since we use 70,000 drums a year, that would be an annual cost savings of $329,000." antilles refining's current cost to manufacture one drum is given below (based on 70,000 drums per year):

In transportation model analysis, the stepping-stone method is used to: a. obtain an initial feasible solutionb. evaluate empty cells for possible degeneracyc. evaluate empty cells for potential solution improvementsd. identify a dummy origin pointe. balance supply and demand