Artisan's Is Considering Leasing a New Computer

question 20

Multiple Choice

Artisan's is considering leasing a new computer.The lease terms include five annual payments of $1,500 with the first payment occurring when the lease is signed.The computer would cost $7,200 to buy and would be depreciated straightline to a zero salvage value over 5 years.The actual salvage value is negligible because of technological obsolescence.The firm can borrow at a rate of 8 percent and has a tax rate of 21 percent.What is the cash flow from leasing relative to purchasing in Year 3?

• A)−$1,325.50
• B)−$1,487.40
• C)−$1,295.10
• D)−$1,380.00
• E)−$975.50

Describe the components and management of a supply chain.

Understand the concept of supply chain orientation and its goals.

Distinguish between push and pull strategies and identify their advantages and conditions for use.

Recognize the importance of managing flows of goods, services, finances, and information within supply chain management.

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Definitions:

Reasoning

Analyzing a subject methodically through logical reasoning to reach a decision or judgement.

Prior Knowledge

Information and understandings that individuals bring to a new learning experience, influencing how they absorb new information.

Fluid Intelligence

The aspect of intelligence involving the ability to reason quickly and to think abstractly, often seen as the capacity to solve novel problems.