Laredo corporation is considering new equipment. the equipment can be purchased from an overseas supplier for $3,120. the freight and installation costs for the equipment are $600. if purchased, annual repairs and maintenance are estimated to be $400 per year over the four-year useful life of the equipment. alternatively, laredo corporation can lease the equipment from a domestic supplier for $1,360 per year for four years, with no additional costs. prepare a differential analysis dated march 15 to determine whether laredo corporation should lease (alternative 1) or purchase (alternative 2) the equipment. (hint: this is a "lease or buy" decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.) if an amount is zero, enter "0".

When a government sees that local industry is threatened by imports, it can threaten to erect import barriers to stop or reduce these imports. this is an example of a driver of international business activity?

The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.