Question $7(1$ point$)$

Heavy Mechanical Complex $($HMC$)$ acquired a giant lathe machine under a capital lease agreement. HMC pays the lessor $$2400$ at the beginning of every $3$ months for $5$ years. If HMC can obtain $5-$year financing at $10\%$ compounding quarterly, what liability will be reported $2$ years later?

a $$37414$

b $$38349$

c $$33109$

d $$33937$

e $$25234$

Question $8(1$ point$)$

Dell Canada advertises a computer bundle including printer, router and home network attached storage for $$2995.$ The same system bundle may be leased for $24$ months at $$130$ per month, at the beginning of each month. At the end of the lease, the bundle may be purchased for $10\%$ of its retail price. What is the economic cost of the lease or purchase in present value, if a two year loan can be obtained at $12\%$ compounded annually to purchase the computer?

a Lease is better by $$48\mathrm{.}64$

b Purchase is better by $$48\mathrm{.}64$

c Lease is better by $$109\mathrm{.}38$

d Purchase is better by $$109\mathrm{.}38$

e Both options are the same.

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assessment: