Please show work for how you get answers for a and b. FOR A the answer...

Please show work for how you get answers for a and b.
FOR A the answer is -46,247.78

For B the answer is 930,668.
Lease or Buy Wolfson Corporation has decided to purchase a new machine that costs $3.2 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 35 percent. The Sur Bank has offered Wolfson a four-year loan for $3.2 million. The repayment schedule is four yearly principal repayments of $800,000 and an interest charge of 9 percent on the outstanding balance of the loan at the beginning of each year. Both principal repayments and interest are due at the end of each year. Cal Leasing Corporation offers to lease the same machine to Wolfson. Lease payments of $950,000 per year are due at the beginning of each of the four years of the lease.

a. Should Wolfson lease the machine or buy it with bank financing?

b. What is the annual lease payment that will make Wolfson indifferent to whether it leases the machine or purchases it?

Expert Solution

jeff jeffy answered 1 year ago

The correct answers are already bolded, but please show your work/explain how you get the answer....

The correct answers are already bolded, but please show your work/explain how you get the answer. 1. Rick can cut 6 pieces of wood or catch 6 fish per day. Timmy can cut 9 pieces of wood or catch 18 fish per day. Which one of the following points is not on the Timmy’s production possibility frontier fish is on the horizontal axis and pieces of wood is on the vertical axis? a. (0, 9) b. (18, 0) c. (8,...

please answer to Part 1 b please show your work how to get that number and...

please answer to Part 1 b please show your work how to get that number and no hand writing plz thanks Waterways Corporation is considering various business opportunities. It wants to make the best use of its production facilities to maximize income. This problem asks you to help Waterways do incremental analysis on these various opportunities. Part 1 Waterways mass-produces a special connector unit that it normally sells for $3.90. It sells approximately 35,000 of these units each year. The...

Please show the work for how to get the answer. Thank you in advance. Assume that...

Please show the work for how to get the answer. Thank you in advance. Assume that all of the mass of a bicycle wheel is concentrated at its rim. Such a wheel of mass 1.2 kg and radius 30 cm starts from rest at the top of a hill 100 m long and inclined at 20� to the horizontal. What will be the speed of the wheel at the bottom of the hill if it rolls without slipping? (Answer: 15...

PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOW WORK. Below is the shareholders’...

PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOW WORK. Below is the shareholders’ equity section of Matt Co.’s balance sheet for December 31, 2018 and December 31, 2017. Matt uses the treasury stock method to account for repurchases. During 2017, Matt repurchased 1,000 shares at $10 per share. December 31, 2018 December 31, 2017 Common Stock (par value $0.01) 120 100 Paid-in Capital, in excess of par 189,880 149,900 Paid-in Capital, share repurchase 3,200 0 Treasury Stock...

Can you please show me the work on how you get your answer please (thank you...

Can you please show me the work on how you get your answer please (thank you in advance kings and queens of chegg) Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases800,000 Direct labor 415,000 Overhead applied730,000 Actual overhead745,000 Selling and administrative salaries500,000 Other selling and administrative expenses185,000 Sales revenue5,000,000 Inventory data: January 1 December 31Raw material 75,000 100,000Work in process 105,000 140,000Finished goods 120,000 125,000Calculate the cost of goods sold. Assume that under/over...

Please show how you get to the answer and explain it! Please thoroughly show how to...

Please show how you get to the answer and explain it! Please thoroughly show how to do this! I'm so confused. Given the following information for Gator Company who uses the LIFO method: Net NRV Minus Realizable Replacement Normal Item Quantity Cost Value Cost Profit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 1 12.00...

please answer to Part 1 c please show your work how to get that number and...

please answer to Part 1 c please show your work how to get that number and no hand writing plz thanks Waterways Corporation is considering various business opportunities. It wants to make the best use of its production facilities to maximize income. This problem asks you to help Waterways do incremental analysis on these various opportunities. Part 1 Waterways mass-produces a special connector unit that it normally sells for $3.90. It sells approximately 35,000 of these units each year. The...

I know the answer for A is 155 and B is 102, please show work how...

I know the answer for A is 155 and B is 102, please show work how to to get there especially after finding 13(208)- 53 (51) for A. And For b same thing please show work step by step. A) Find the multiplicative inverse of 51 (mod 208). justify your answer and leave it as number between 0 and 207. B) solve the following linear congruence. Justify your work and leave your answer as a number between 0 and 207...

For the following question, please show your work. Every number you get, show how you got...

For the following question, please show your work. Every number you get, show how you got it. And please make everything as clear as possible. Thanks in advance. 2. What is the outstanding balance on the following loan after the borrower has made 12.5 years of payments? (For full credit, calculate manually and show all of your work.) (20 pts) Loan amount: $300,000 Term: 25 years Discount Points: 5 Payments: Monthly Interest Rate: 4.5% (annual)

Please solve all answers on Excel and show step by step how you get the WACC...

Please solve all answers on Excel and show step by step how you get the WACC answer. Tornado Motors is a major producer of sport and utility trucks. It is a family owned company, started by Jane Biscayne in 1935, at the height of the Great Depression. Today the firm produces 3 lines of trucks. These include a standard, no-frills short bed pickup truck (Model A), a mid-size version (Model B ) and a larger, heavy-duty work truck (Model C)....

Question