Business, 19.07.2019 20:10, shaheedbrown06
Afarmer is considering the purchase or lease of a forklift. he can buy a new forklift or lease a new forklift. he believes that each forklift will provide the same service but the costs are different. he has provided the following information. inflation is assumed to be zero. assume that the lease payment is constant throughout the lease agreement. assume that the lease payment would be made at the beginning of the year and the lease ends at the end of the 10th year. the lessor will pay repairs and maintenance. also assume that this farmer could claim the tax deduction due to the lease payment when it is paid. the new forklift has a price of $11,400, a before-tax net return of -$6,100, an investment life of 10 years, and a terminal value of $8,000. if he was to lease the forklift the operating expenses for this tractor will be $3,500. suppose that the pre-tax rate of return is 6%, the marginal tax rate is 24%, and the irs allows him to depreciate the tractor over 14 years using the straight-line method. what is the npv of the purchased forklift?
Answers: 1
Business, 21.06.2019 21:30, annethelusma25
Which of these things did galileo not do? a. stop publishing his scientific work after being convicted of heresy b. invent the concept of acceleration c. experiment with rolling balls down ramps of increasing steepness to test how objects would fall d. argue that earth moves around the sun e. make up a thought experiment that indicated that objects would fall at the same rate
Answers: 3
Business, 22.06.2019 12:10, gingerham1
Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%
Answers: 1
Afarmer is considering the purchase or lease of a forklift. he can buy a new forklift or lease a new...
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