Rick is an accountant for MRT Corporation. His boss has asked him to make a recommendation about buying or leasing new computer equipment for the accounting department. A decision has already been made to acquire a particular type of equipment. The only remaining decision is whether the equipment will be purchased or leased. Several pieces of information Rick might consider in his decision are listed below. Indicate whether each of the following items is: (R)relevant or (I)irrelevant to the decision.
____ 1. Cost of current computer equipment
____ 2. Interest rate for lease
____ 3. Employee feelings about the type of new computer equipment
____ 4. Cost of purchasing new equipment
____ 5. Depreciation on old equipment
____ 6. Future reliability of new equipment
____ 7. Independent quality ratings on new equipment
____ 8. Trade-in value of old equipment
____ 9. Tax incentives to lease
____ 10. Personal relationship with equipment vendor

Question

Quizplus · Accepted Answer

The Answer of Rick is an accountant for MRT Corporation. His boss has asked him to make a recommendation about buying or leasing new computer equipment for the accounting department. A decision has already been made to acquire a particular type of equipment. The only remaining decision is whether the equipment will be purchased or leased. Several pieces of information Rick might consider in his decision are listed below. Indicate whether each of the following items is: (R)relevant or (I)irrelevant to the decision.
____ 1. Cost of current computer equipment
____ 2. Interest rate for lease
____ 3. Employee feelings about the type of new computer equipment
____ 4. Cost of purchasing new equipment
____ 5. Depreciation on old equipment
____ 6. Future reliability of new equipment
____ 7. Independent quality ratings on new equipment
____ 8. Trade-in value of old equipment
____ 9. Tax incentives to lease
____ 10. Personal relationship with equipment vendor

Rick Is an Accountant for MRT Corporation