Suppose your company is trying to decide whether it should buy special equipment
Not what you're looking for?
Suppose your company is trying to decide whether it should buy special equipment to prepare some of its high-quality publications itself or lease the equipment from another company. Suppose leasing the equipment cost $240 per day. If you decide to purchase the equipment, the initial investment is $6,800, and operations will cost $70 per day. After how many days will the lease cost be the same as the purchase cost for the equipment? Assume your company would only use this equipment for 30 days. Should your company buy the equipment or lease it?
Suppose the company uses the equipment for x days.
If the company buys the equipment, the total cost is 6800 + 70x.
If the company leases the equipment, the total cost is 240x.
For break-even, 6800 + 70x = 240x
Or (240 - 70)x = 6800
Or 170x = 6800
Therefore, x = 6800/170 = 40 days
If the company wants to use the equipment only for 30 days, then
Total cost if the company buys the equipment = 6800 + 70*30 = $8,900
Total cost if the company leases the equipment = 240*30 = $7,200
Therefore, it is more economical for the company to lease the equipment.
Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Word 2010: Tables
Have you never worked with Tables in Word 2010? Maybe it has been a while since you have used a Table in Word and you need to brush up on your skills. Several keywords and popular options are discussed as you go through this quiz.
Inserting and deleting in a linked list
This quiz tests your understanding of how to insert and delete elements in a linked list. Understanding of the use of linked lists, and the related performance aspects, is an important fundamental skill of computer science data structures.
Basic Computer Terms
We use many basic terms like bit, pixel in our usual conversations about computers. Are we aware of what these mean? This little quiz is an attempt towards discovering that.
Basic Networking Questions
This quiz consists of some basic networking questions.
C++ Operators
This quiz tests a student's knowledge about C++ operators.