Your Firm Is Considering Leasing a New Computer

question 20

Multiple Choice

Your firm is considering leasing a new computer.The lease lasts for 9 years.The lease calls for 10 payments of £1,000 per year with the first payment occurring immediately.The computer would cost £7,650 to buy and would be straight-line depreciated to a zero salvage over 9 years.The actual salvage value is negligible because of technological obsolescence.The firm can borrow at a rate of 8%. The corporate tax rate is 30%.This lease would be classified as a(n) :

• A)operating lease because the asset will be obsolete.
• B)operating lease because there is not amortization.
• C)leveraged lease because it is being financed.
• D)capital lease because the lease life is greater than 75% of the economic life.
• E)sale and leaseback because the company gets full use of the asset.

Apply graphical analysis to illustrate profit-making and loss scenarios for monopolistic competitors.

Grasp the concept and consequences of perfect price discrimination on consumer surplus and market efficiency.

Comprehend the market dynamics and adjustments in response to profits and losses within monopolistic competition.

Understand the definition and characteristics of monopoly in comparison to perfect competition.

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Definitions:

Media Liaison

The person or role responsible for managing communication and interactions between an organization and the media.

Trauma

A deeply distressing or disturbing experience, often resulting in lasting psychological impact.

Mental

Relating to the mind, cognitive processes, or psychological state of an individual.

Emotional State

The internal condition of an individual that involves feelings, moods, and temperaments, influencing perception and behavior.