Math

posted by .

Big Sky Mining Company must install $1.5 million of new machinery in its' Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. The lease would qualify as a guidline lease for tax purposes. Also, assume no maintenance charges. Assume that the following facts apply:

  • Math - incomplete -

    Please complete the question.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Capital Budgeting

    A company has revenues of 100 per unit sold. Current sales are 7500 units. Labor rates are 15 per hour. It takes 1.2 hours of labor to make each buggy. Material costs are 13.50 per unit. Figures are expected to remain the same permanently …
  2. Finance

    I need help with this finance homework question PLEASE! Any help greatly appreciated! Your firm has been presented a leasing alternative on a new pizza dough machine. The annual lease payments would be $135m. Tax rate is 40%. The lease …
  3. accounting

    ● Case 13-4 Application of SFAC No. 13 On January 1, 2006, Lani Company entered into a non cancelable lease for a machine to be used in its manufacturing operations. The lease transfers ownership of the machine to Lani by the …
  4. finance

    Th e First National Bank of Great Falls is considering a leveraged lease agreement involving some mining equipment with the Big Sky Mining Corporation. Th e bank (40 percent tax bracket) will be the lessor; the mining company, the …
  5. Finance

    Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5 year, $6,000,000 bank loan to finance service equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with …
  6. Accounting

    Case 13-5 Lease Classifications Doherty Company leased equipment from Lambert Company. The classification of the lease makes a difference in the amounts reflected on the balance sheet and income statement of both Doherty and Lambert. …
  7. math

    Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bak loan for 100% of the purchase price, or it can lease the machinery. Assume the following facts apply: a) The machinery fall s …
  8. strategic ffinancial mangement

    XYZ company is contemplating the purchase of a new machinery costing rupees 30000with an expected life of 5 year at the end of which period , it can be solved for rupees 750 thousand in replacement of an old machine purchased 3 years …
  9. Math

    if company 2 lease/maintenance totals $125,000 for the year and company 1 spends 27% for lease/maintenance, how much is company 1 paying for their lease/maintenance?
  10. Finance

    After deciding to buy a new car, you can either lease the car or purchase it on a 3-year loan. The car costs $32,000. The lease offer is for $450/month for 36 months, with only $99 due up front. If you buy the car with a 3-year loan, …

More Similar Questions