1. If the after-tax present value of buying equipment and using it for six years is $125,000, calculate the break-even after-tax yearly lease payment (seven payments) using a 8% real discount rate. (Assume that lease payments are made at the beginning of the year and zero inflation.)
$19,607
$22,231
$17,341
$18,555
2. The key variables in the owner wealth maximization process are? ________.
A. riskminus−free rate and share price
B. cash flows and risk
C. total assets and risk
D. market risk premium and risk