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.
