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Meg O'Byte wants to buy a new computer for her business for Internet access on...

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Accounting

Meg O'Byte wants to buy a new computer for her business for Internet access on a cable modem. The computer system cost is $5,100. The cable company charges $200 (including the cable modem) for instalation and has a $50 a month usage fee for businesses, paid at the end of the month. Meg expects to buy the system with a $100 down payment, financing the balance at 8 percent over the next 4 years. She will sell the computer for $1,000 when she upgrades. She expects a $500 a month increase in cash flow and is in the 25 percent tax bracket.

a. The start-up costs are _________________.

b. The PVC is _________________.

c. The PVB is _________________.

d. The monthly payment for the computer is _________________.

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