Business Finance Homework Help

Incremental Analisys

Question 1 – A company could sell a building for $250,000 or lease it for $2,500 per month.  What would need to be considered in determining if the lease option would be preferred?

Question 2 – Many fast-food restaurant chains, such as McDonald’s, will occasionally discontinue restaurants in their system.  What are some of the financial and non-financial considerations in deciding to eliminate a store?

Question 3 – A chemical company has a commodity-grade and premium-grade product.  Why might the company elect to process the commodity-grade product further to the premium-grade product?