Aurian rents trucks for his hauling service and pays $17 per hour for a truck. He rents the trucks on an asneeded basis about twice per week. If his tax rate is 8%, then what is his after tax lease payment?
Aurian rents trucks for his hauling service and pays $17 per hour for a truck. He rents the trucks on an asneeded basis about twice per week. His daily cost of capital is 0.05% and he rents a truck today for 2 hours, two days from now for 4 hours, and 4 days from now for 8 hours. If his tax rate is 8%, then what is the present value of his after tax lease payments?
You can buy a steam press for your business at $5,000 or lease one for 6 months at $1,200 per month, with the first payment due today. The cost of capital is 8% per month and the tax rate is 15%. Should you lease or buy? What is the NAL?
Imagine that you are investing in Syria. Provide specific examples of events that might affect your exposure to exchange rate risk and political risk.
You want to buy industrial ethanol and you have $125USD to spend. The domestic price is $0.50USD per liter. You can also buy ethanol with free shipping from Canada and Mexico. The price in Canada is $0.54CD and the price in Mexico is 10 pesos per liter. The spot US-CA exchange rate is $0.90USD and the CA-MX exchange rate is 16?. From what country should you buy your ethanol and how much can you afford to buy?