Question
In: Finance
A forklift can be leased for $3000 per month, with maintenance and insurance included. Alternatively, the...
A
forklift can be leased for $3000 per month, with maintenance and
insurance included. Alternatively, the forklift can be purchased
for $25,000. Maintenance will be $300 per month and insurance will
be $400 per year. At the end of five years, the forklift will have
a salvage value of $10,000. Based on an APR of 6%, determine which
alternative is less expensive.
Solutions
jeff jeffy answered 1 month agoRelated Solutions
A forklift can be leased for $3000 per month, with maintenance and insurance included. Alternatively, the...
A forklift
can be leased for $3000 per month, with maintenance and insurance
included. Alternatively, the forklift can be purchased for $25,000.
Maintenance will be $300 per month and insurance will be $400 per
year. At the end of five years, the forklift will have a salvage
value of $10,000. Based on an APR of 6%, determine which
alternative is less expensive.
Please show all work.
A forklift can be leased for $3000 per month, with maintenanceand insurance included. Alternatively, the...
A forklift can be leased for $3000 per month, with maintenance
and insurance included. Alternatively, the forklift can be
purchased for $25,000. Maintenance will be $300 per month and
insurance will be $400 per year. At the end of five years, the
forklift will have a salvage value of $10,000. Based on an APR of
6%, determine which alternative is less expensive
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forklift's market value is 15% less for each of its first 6 years
of service. After this period the market value declines at a rate
of 7.5% for the next 6 years.
The battery has a life of 12 years and a salvage value of $300.
The charger has a 12-year life and a $100 salvage value. The
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Cat leased $32,000 of conveyers to Dog for 60 months for $570 per month. The conveyers...
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