write my assignment 12466

Please prepare are a for a schedule to support your decision on accounting paper.

HW # 4CLASS EXERCISEThe management of The Alexandrov Company decided to acquire the use ofa machine to be used in its manufacturing process . The machine it needs ismanufactured only by Chang , Incorporated . The machine can be used forten years and then sold for $10, 000 at the end of its useful life . Chang’soptions :management has presented Alexandrov with the following acquisitionLease : The machine could be leased for a ten- year period for an annuallease payment of $25, 000, with the first payment due on the date that theagreement is signed . All maintenance and insurance costs for the machine ,which are expected to be about $5, 000 per year , would be paid by Chang ,and the machine would be returned to Chang at the end of the lease term .Purchase : The machine could be purchased for $130, 000 in cashAssuming that ( 1 ) Alexandrov and Chang will agree on a transaction onNovember 30 , 2010 , and ( II ) the current interest rate for Alexandrov’s long-term borrowing is 12% , which of the two options would be the mosteconomically attractive to Alexandrov ? Prepare a formal schedule tosupport your decision .