This essay has been submitted by a student. This is not an example of the work written by professional essay writers.
Uncategorized

Homework 9 from Lesson 10

Pssst… we can write an original essay just for you.

Any subject. Any type of essay. We’ll even meet a 3-hour deadline.

GET YOUR PRICE

writers online

Homework 9 from Lesson 10

Due: Sunday, December 2, 2018

 

You only need to submit one file to the Canvas dropbox: An Excel file (100 points): A spreadsheet showing your approach with your timeline, your calculations, and your solutions.

Question 2 (25 points):

Suppose for buying the new machine in Question 1, you can lease (operating lease) the machine for 8 years with annual operating lease payments (LP) of $125,000 (from year 1 to year 8).  Considering income tax of 21% and minimum ROR of 12%, calculate the ATCF and NPV of leasing the machine using this leasing agreement.  Compare your result with the previous question and use NPV analysis to determine which option to choose.

Question 3 (50 points):

Suppose for buying the new machine in question 1, you can lease the machine for 8 years using a capital lease with annual lease payments of $135,000 (from year 1 to year 8) and lease interest rate of 5%. Depreciation, revenue and operating cost will be similar to Question 1. Considering income tax of 21% and minimum ROR of 12%, calculate the ATCF and NPV of leasing the machine using this leasing agreement.  Compare your result with the previous questions and use NPV analysis to determine which option to choose.

Please calculate and include the lease principal and interest calculations.

  Remember! This is just a sample.

Save time and get your custom paper from our expert writers

 Get started in just 3 minutes
 Sit back relax and leave the writing to us
 Sources and citations are provided
 100% Plagiarism free
error: Content is protected !!
×
Hi, my name is Jenn 👋

In case you can’t find a sample example, our professional writers are ready to help you with writing your own paper. All you need to do is fill out a short form and submit an order

Check Out the Form
Need Help?
Dont be shy to ask