A farmer is considering the purchase or lease of a truck. He can buy a new truck or lease a new truck. He believes that each truck will provide the same service but the costs are different. He has provided the following information. Inflation is assumed to be zero. Assume that the lease payment is constant throughout the lease agreement. Assume that the lease payment would be made at the beginning of the year and the lease ends at the end of the 13th year. The lessor will pay repairs and maintenance. Also assume that this farmer could claim the tax deduction due to the lease payment when it is paid. The new tractor has a price of $41,500, a before-tax net return of -$6,200, an investment life of 13 years, and a terminal value of $10,900. If he was to lease the tractor the operating expenses for this tractor will be $3,500. Suppose that the pre-tax rate of return is 11%, the marginal tax rate is 22%, and the IRS allows him to depreciate the tractor over 8 years using the straight-line method. (i) What is the NPV of the purchased tractor?
(ii) What is the annuity equivalent of the purchased tractor?
(iii) What is the NPV if the tractor was leased?
(iv) What is the annuity equivalent if the tractor was leased?
(v) Which tractor should this farmer choose?

In return for their with optimizing his painting project, the castle servant informed poly and digit that he saw someone dressed as the king leaving behind a trail of crumbs as he walked into the jester's room late last night. poly and digit have finally found the crisp-collecting culprit — it turns out the jester's shoe size and hair color match the clues that were found! in gratitude, poly and digit agree to the servant with his current task of replacing all of the tables and chairs in the castle. his goal is to determine which furniture company should produce the new furniture. he receives information from a company that customizes elegant furniture, and he wants to analyze the company's production process in order to calculate some problems about cost and availability. read the following scenario, and assist poly and digit as they the servant with his calculations. the fit for a king furniture company requires 2020 hours of labor to produce a standard table, and a chair requires 1212 hours of labor. the labor available is 565565 hours per week. the company can produce at most 3535 chairs per week.

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000