The exam is due by 3:00 PM, Monday, Dec. 16, 2019. Please submit your paper to TAs in Room 2-106, CBA Building 2

management

Description

Note: 

1. The exam is due by 3:00 PM, Monday, Dec. 16, 2019. Please submit your paper to TAs in Room 2-106, CBA Building 2. 

2. No late submission will be accepted in any circumstance. 

3. The answer should be submitted in printed form (hard copy). No electronic submission will be accepted. 

4. Answer should clearly show all the steps taken in reaching the answer. Failing to do so may result in substantial point deduction. 

5. Any form of collaboration, cooperation, work-together or academic dishonesty is subject to severe penalty.


Problem 1. (25 points) Jeeff Beezzos is the manager of a small training center that provides hands-on computer software education for businesses in and around Chicago, Illonois. Jeff leases the computer equipments used in his center, and he likes to keep the equipment up-to-date so that it will run the latest, state-of-art softwares in an efficient manner. Because of this, Jeeff wants to replace his equipment at least every two years. 


His supplier proposed three lease contracts. Under each contracts, Jeeff needs to pay $75,000.- initially to obtain the equipment he wants. However, the three contracts differ in term of amount Jeeff would have to pay in subsequent years to replace his equipment as shown in the table below. 

Instruction Files

Related Questions in management category