Leasing exerc. help

[Calado99]

1. The SALREI company needs to purchase equipment to expand its capacity
production valued at €52,000. It is currently evaluating two proposals for
financing for a period of 12 months and both at a rate of 3% per quarter:
- Loan agreement to be repaid through constant quarterly installments and
postponed;
- Leasing Agreement with constant quarterly installments in advance and with the value
10% residual to be paid after the last instalment.
a) Calculate the value of the benefits and graphically represent the flows of
operations.
b) Fill in the amortization table for each option,
showing all calculations for the first period.
c) State which modality the company should choose, justifying
conveniently your answer.

 

[Deleted member 4993]

1. The SALREI company needs to purchase equipment to expand its capacity
production valued at €52,000. It is currently evaluating two proposals for
financing for a period of 12 months and both at a rate of 3% per quarter:
- Loan agreement to be repaid through constant quarterly installments and
postponed;
- Leasing Agreement with constant quarterly installments in advance and with the value
10% residual to be paid after the last instalment.
a) Calculate the value of the benefits and graphically represent the flows of
operations.
b) Fill in the amortization table for each option,
showing all calculations for the first period.
c) State which modality the company should choose, justifying
conveniently your answer.

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