Net Present Value of Leasing Assignment

You have just been offered a contract worth $1,04 million per year for 5 years. However, to take the contract, you will need to purchase some new equipment Your discount rate for this project is 11.6%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV?

The most you can pay for the equipment and achieve the 116% annual return is $1 million (Round to two decimal places.)

 You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for $9,900 per year i you sign a guaranteed 5 year lease the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease Alternatively, you could buy and maintain the equipment yoursell. The cash flows from doing so are listed below (the equipment has an economic life of 5 years). If your discount rate is 7.1%, what should you do?

Year o – 540,600 Year 1 – $2,100 Year 2 – $2,100 Year 3 -$2,100 Year 4 — $2,100 Year 5 -$2,100

The net present value of the leasing alternative is $ (Round to the nearest dollar.) Get Finance homework help today

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Military
Good work.
Customer 456821, June 22nd, 2022
Human Resources Management (HRM)
Good work
Customer 463059, June 9th, 2022
Project Management
I gave a lower rating on the service because, a notification from the support team went out but it did not come to my email address. Had I not looked earlier on the website, then I would have been penalized for not turning in my paper on time. On my profile, I have a phone# and I also have an email address. Please set up a system to text or email new messages or notifications from the writer or support team. This will ensure that the order is processed in a timely manner. With the new and upcoming technology, this seems like it should be an easy fix to have a tool built in the website to email or text notifications of changes to orders. This is no reflection to the support team. I see this as a system issue and not a support team issue.
Customer 463323, September 26th, 2022
Business Studies
Good
Customer 453413, April 19th, 2020
Math
ALL questions answered.
Customer 453625, April 7th, 2022
Aviation
Great job!
Customer 454145, April 12th, 2020
Nursing
yes
Customer 452577, January 27th, 2020
Marketing
Did an excellent job on the paper!
Customer 463095, June 22nd, 2022
Military
good job
Customer 456821, October 20th, 2022
Religious studies
Excellent content and structure.
Customer 462681, April 24th, 2022
Health Care
It is exactly my expectation. Thank you.
Customer 454755, June 30th, 2020
Business Studies
Great
Customer 453413, February 27th, 2020
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat