Screen mount revenue $200k/year, tax rate 20%, i = 5% Option 1: Buy tooling, $800K, Life 10

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Screen mount revenue $200k/year, tax rate 20%, i = 5%

Option 1: Buy tooling, $800K, Life 10 yrs, $50K salvage

Option 2: Loan, $800K, $40K/year interest payment, balloon at 10 yrs $800K

Option 3: Lease, $100K for years 1 -10.

Use Present Worth (PW) analysis to determine which is the best option.

Related Book For answer-question

Calculus Early Transcendentals

ISBN: 978-0321947345

2nd edition

Authors: William L. Briggs, Lyle Cochran, Bernard Gillett

See More Books

Posted Date: Apr 29, 2021 06:30 PM

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Screen mount revenue $200k/year, tax rate 20%, i = 5% Option 1: Buy tooling, $800K, Life 10

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Calculus Early Transcendentals

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