Solved: The copier wouldcost 8100 to buy and would be depreciated, Business Management

+44 141 628 6080
[email protected]

The copier wouldcost 8100 to buy and would be depreciated

Your firm is considering leasing a new photocopier. The leaselasts for nine years. The lease calls for 10 payments of $1,000 peryear with the first payment occurring immediately. The copier wouldcost $8,100 to buy and would be depreciated using the straight-linemethod to zero salvage over nine years. The firm can borrow at arate of 8%. The corporate tax rate is 30%. What is the NPV of the lease? Correct Answer: $686.00. Please show the formula & explain your calculations.

View Complete Question

Solution Preview :

Prepared by a verified Expert

Business Management: The copier wouldcost 8100 to buy and would be depreciated

Reference No:- TGS01467210

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Business Management

Q : What would the after-tax cash flow in year three be if the

your firm is considering leasing a new radiographic device the lease lasts for three years the lease calls for four

Q : Identify and interview five employed people about their

identify and interview five employed people about their current level of job satisfaction identify the top three

Q : Mr jorgee klouni borrowed 160000 from the bank with terms

mr jorgee klouni borrowed 160000 from the bank with terms requiring that the loan be repaid in equal installments every

Q : What is the after-tax cash flow from leasing relative to

for questions 1amp3 if you can please provide the step by step process with the formula used to arrive at the answer it

Q : The copier wouldcost 8100 to buy and would be depreciated

your firm is considering leasing a new photocopier the leaselasts for nine years the lease calls for 10 payments of

Q : List different methods used in a needs assessment choose

the needs assessment serves as the foundation of a successful training initiative the needs assessment helps understand

Q : Explain the difference between negative and positive

explain the difference between negative and positive balance of trade what make each one of them

Q : Since the question is a typical constant growth model an

a share of common stock has just paid a dividend of 5 ie d0 5 that is expected to grow by 4 each year if investors

Q : What do you feel are the most important assessment methods

when a position is recruited for and many applicants express interest through submission of resumes completion of the

1953133

Questions
Asked

3,689

Active Tutors

1430004

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Identify problems and concerns that contributed

Identify problems and concerns that contributed to the many race-related protests and unrest during the 2020 year.

How the major schools of thought within sociology

Question: Discover how the major schools of thought within sociology explain social stratification.

Cases of local communities using modern technology

Question: Cases of local communities using modern technology to preserve and revive their traditions:

How code of suburbs differs from the code of street

Q1. Explain how the Code of the Suburbs differs from the Code of the Street? Q2. Explain your general thoughts on the book.

How sociological models help understand mental illness

Based on the chapter by Allen Furr on the sociology of mental illness, How do sociological models help you understand mental illness differently

Discuss statements about sociological approaches

Question: Which of the following statements about sociological approaches are true?

How is it rational for the owner of a factory or plantation

How is it rational for the owner of a factory or plantation to work his laborers to death or disability when they can easily be replaced cheaply?