Warf Computer Essay Example

When the lease is renewed in two years, Hendrix would consider the increased lease payments In the first two years when calculating the terms of the renewal. The equipment is expected o have a market value of $1 million in two years. What is the ANAL of the lease contract under these terms? Why might Nick prefer this lease? What are the potential ethical issues concerning the new lease terms? 3.

In the leasing discussion, James informs Nick that the contract could include a purchase option for the equipment at the end of the lease. Hendrix Leasing offers three purchase options: 1. An option to purchase the equipment at the fair market value. 2. An option to purchase the equipment at a fixed price. The price will be negotiated before the lease is signed. 3. An option to purchase the equipment at a price of $125,000. How would the Inclusion off purchase option affect the value of the lease? 4. James also Informs Nick that the lease contract can Include a cancellation option.

The cancellation option would allow War Computers to cancel the lease on any anniversary date of the contract. In order to cancel the lease, War Computers would be required to give 30 days' notice prior to the anniversary date. How would the Inclusion of a cancellation option affect the value of the lease? BY attach keyboard. Because of the required sensitivity of the microphone and its small size, Because of the rapid development of new technology, the equipment falls in the interact calls for four annual payments of $650,000, due at the beginning of the year.

Additionally, War Computers must make a

security deposit of $1 50,000 that will be the lease payments to $1,1 50,000 for each of the two years. When the lease is renewed in two years, Hendrix would consider the increased lease payments in the inclusion off purchase option affect the value of the lease?