Accounting Solution

HW#4 (solution) To grader/TA: for case study headlands 1 and 2: if a savant gets the settle final stage and shows overcompensate abstract, leave 2.0/2.0 for each question; if a student gets the cover expiry and the majority of the abstract is sink with some low errors, or if a student gets the wrong conclusion though the abridgment process is actually correct, receive 1.5/2.0 for each question; if a student gets wrong conclusion but the analysis is on average correct, or if a student gets the correct conclusion but has major errors in the analysis, give 1.0/2.0; if a student does not get the correct conclusion nor does the analysis shows the correct method, but the student shows effort to solve it, give 0.5/2.0. distinguish I: Case Study: Riverbend Telephone follow (5 points) 1. Considering the arrange value of future cash flows, should the company trade or train the new truck? Assume that Riverbend uses the straight-line dispraise method. (You fill to take into account the cash effect from taxes.) (2 points) attain that this deal should be treated as a capital letter employ for financial report purpose. However, for the purpose of analyzing the difference among buy and lease, lets treat Riverbends lease as an operating lease in this exercise (but Riverbend is mollify liable for some costs of operation and maintenance, as describe in the case). Also batting order that if investing in the truck, it must flummox a return of at least(prenominal) 12%. thence we use 12% as the enkindle rate. In addition, notice that Riverbend pays the annual charge on the premier(prenominal) day of each year.

|Cash flows ! |0 |1 |2 |3 |4 |5 | |Buy | | | | | | | |price |-24,300 | | |...If you pauperism to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay