Link for question- https://docs.google.com/document/d/15rRNBPWxQM0b-qqlTtG9IEdD0jzp4r97m7xW7XNYOFM/edit?usp=sharing

Link for answer sheet - https://docs.google.com/spreadsheets/d/1SoELkt44XpYnkPNeNVGOAix5V6sCBJ1H/edit?usp=sharing&ouid=117400224083250374148&rtpof=true&sd=true

Please answer the following Questions

Short Answers

1. What is your conclusion and recommendation to Dr Wei as to the best alternative among those below? How did you determine this?
   1. Lease from Howard Picard
   2. Purchase from Howard Picard (using debt financing)
   3. Lease from Macrosoft
   4. Purchase from Macrosoft (using debt financing)
2. After presenting your conclusion, Dr. Wei replied to you saying,

"Oops, I forgot to mention that Macrosoft's equipment is higher quality than HP's and

can therefore produce more products. We anticipate annual pre-tax Gross Margins of

$72,000 as a direct result of using HP's machine and $88,000 from Macrosoft's machine."

Does this new information change your conclusion? Why?

1. Dr. Wei is a technological master, but he has little respect for the field of finance. He said:
   1. "Sorry, I have one more question before I pay your consulting fee. I don't understand your rationale. I have $140,000 in the bank. Why should I not just purchase HP's equipment with cash on hand, and place your report in the recycling bin?"

Please check the Excel sheet if the answers are correct. If not Please edit within the sheet.

Thank you