Question: If i could get some help i'll like the answer! The Riteway Ad Agency provides cars for its sales staff. In the past, the company

If i could get some help i'll like the answer!
If i could get some help i'll like the answer! The Riteway
Ad Agency provides cars for its sales staff. In the past, the
company has always purchased its cars from a dealer and then sold
the cars after three years of use. The company's present fleet of

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars is three years old and will be sold very shortly To provide replacement fleet, the company is considering two alternatives. Purchase aiternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $18,000 each. If this altemative is accepted, the following costs will be incurred on the fleet as a whole: At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $70,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide ail servicing'and repairs. license the cars. and pry all the taxes. Riteway would be required to make a $15,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 20% Click here to view and to determine the appropriate discount factor(s) using tables: What is the net present value of the cash flows associated with the lease alternative? Which alternative should the company accept? Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the purchase alternative? (Enter negative a minus sign. Round your final answer to the nearest whole dollar amount.) 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the compary accept? Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the lease altemative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Exercise 12-6 (Algo) Simple Rate of Return Method [LO12.6] The management of Ballard MicroBrew is considening the purchase of an automated bottling machine for 374,000 . The machine would replace an oid plece of equipment that costs $19.000 per year to operate. The new machine would cost $9,000 per year to operate The old machine currently in use is fully depreciated and could be sold now for a saivage value of $31,000. The new machine would have a useful iffe of 10 years with no salvage value. Required: 1. What is the annual depreciation expense assoclated with the new botting machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of soturn on the new botting machine? (Round your answer to 1 decimal place l.e. 0.123 should be considered as 12.3\%.)

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