The XYZ Company has a choice between two warehouses. A lease at location A costs $1000 per
Fantastic news! We've Found the answer you've been seeking!
Question:
The XYZ Company has a choice between two warehouses. A lease at location A costs $1000 per month with a payment of $2000 up front to guarantee the 3 year lease. Location B would cost $1200 per month and would be leased from month to month. The anticipated revenue in either location is $1500 per month. The estimated rate of return is 10% per year. Using net present value, determine which location would be the better choice.
Expert Answer:
Answer rating: 100% (QA)
Assumptions Rate 10 yearly Number of period n 36 Step 1 Find t... View the full answer
Posted Date:
Students also viewed these general management questions
-
A queen gives a dragon-slaying hero a choice between two prizes. The first provides $100,000 a day for d-days; the second provides an amount of money that doubles in size each day for d-days starting...
-
Using the present value index Alonso Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $90,000 and $84,000,...
-
The Learned Book Company has a choice of publishing one of two books on the subject of Greek mythology. It expects the sales period for each to be extremely short, and it estimates profit...
-
If a particular glucose fermentation process is 87.0% efficient, how many grams of glucose would be required for the production of 51.0 g of ethyl alcohol (C 2 H 5 OH)? C 6 H 12 O 6 2C 2 H 5 OH +...
-
Confirmations of long- term debt provide evidence about which assertions?
-
Describe the importance of documentation under an SDLC methodology.
-
____________ is the combination of resources, knowledge, and techniques that creates a product or service output for an organization. (a) Information technology (b) Strategy (c) Organizational...
-
Larime Corp. is forecasting 20X2 near the end of 20X1. The estimated year-end financial statements and a worksheet for the forecast follow. Management expects the following next year. An 8% increase...
-
Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $138,000. The machines estimated useful life at the time of the purchase was five years, and its...
-
Assume that: Johnstone and Joleen Straw each own 50% of the issued shares in the company. The Straws are to be assessed for taxation purposes in the current financial year as a small business on the...
-
Company XYZ.s stock prices and the market index for the past four years are given in the following table. The current risk free rate is 8%. Use the data answer the following questions (Of course, the...
-
Develop a parallel matrix multiplication program in CUDA C/C++ to leverage GPU acceleration. Compare the performance of your GPU implementation with a traditional CPU-based matrix multiplication...
-
The Crystal Coast Ocean Resort (CCOR) is a large, family-owned resort located on one of the finest beaches in North Carolina. The Resort is locally called the "Ramada Inn: Crystal Coast Ocean...
-
Which plan is cheaper and by how much per annum? A company can borrow $180 000 for 15 years. They can amortize thedebtatj1=10%,ortheycanpayinterestontheloanatj1=9%andsetup a sinking fund atj1= 7% to...
-
Imagine that you have an exemplary team member who deserves a 20% raise based on their performance and dedication during the Covid-19 pandemic. You would love to give them the raise they deserve, but...
-
Use the following information to construct an income statement. Interest $228,673 Sales $5,618,587 Expense Cost of Depreciation Goods $3,041,669 $364,490 Expense Sold Other Operating $210,545 Flat...
-
Chapter 6 Assignments Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: a. Sold merchandise for cash, $17,550. The cost of the...
-
A condenser (heat exchanger) brings 1 kg/s water flow at 10 kPa quality 95% to saturated liquid at 10 kPa, as shown in Fig. P4.91. The cooling is done by lake water at 20C that returns to the lake at...
-
What is the value of a call option if the underlying stock price is $20, the strike price is $22, the underlying stock volatility is 50 percent, and the risk-free rate is 4 percent? Assume the option...
-
Assume Polands currency (the zloty) is worth $.17 and the Japanese yen is worth $.008. What is the cross rate of the zloty with respect to yen? That is, how many yen equal a zloty?
-
Utah Banks bid price for Canadian dollars is $.7938 and its ask price is $.81. What is the bid/ask percentage spread?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App