Top Posters
Since Sunday
r
5
m
5
h
5
r
5
t
5
B
5
P
5
s
5
m
5
c
5
c
4
4
New Topic  
hliz3 hliz3
wrote...
Posts: 139
Rep: 0 0
2 months ago
You are the manager of a sales division, and are considering leasing a fleet of cars for your staff. You can buy the cars for $300,000 or you can lease them for 8 years at $60,000 per year with payments due at end of each year. The company has a tax rate of 40.0% and a CCA rate of 10.0% on vehicles. If the company buys the cars and finances the purchase with a loan, they will pay 7.0% in interest. Assume that after the term of the lease is over, the salvage value of the cars will be zero. What is the NPV of the lease, based on half-year rule for CCA in the first year?

▸ -$23,194

▸ $59,610

▸ $217,196

▸ -$240,390
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
Read 22 times
1 Reply
Replies
Answer verified by a subject expert
mattloftergenermattloftergener
wrote...
Posts: 132
Rep: 0 0
2 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

hliz3 Author
wrote...

2 months ago
Thanks
wrote...

Yesterday
Helped a lot
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  860 People Browsing
Related Images
  
 10766
  
 100
  
 347
Your Opinion
What's your favorite funny biology word?
Votes: 335