Nelson's Interiors Is Trying to Decide Whether to Lease or Buy

question 269

Multiple Choice

Nelson's Interiors is trying to decide whether to lease or buy some new equipment. The equipment costs $64,000, has a 5-year life, and will be worthless after the 5 years. The equipment will be
Replaced. The cost of borrowed funds is 10.5 percent and the tax rate is 35 percent. The equipment
Can be leased for $13,200 a year. What is the amount of the after-tax lease payment?

• A) $7,370
• B) $7,550
• C) $8,375
• D) $8,580
• E) $9,481

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Definitions:

Developing Audience Benefits

The process of identifying and enhancing the advantages or positive outcomes that a target audience can gain from a product, service, or content.

Multiple Audiences

The variety of individuals or groups that a communication, product, or service is intended to reach, each with distinct needs or interests.

Message Importance

The significance or relevance of a message's content to its recipients, often determining the urgency and attention it receives.

Audience

The group of people targeted by a message, who receive and interpret the communication.