Your firm is considering leasing a new robotic milling control
system. The lease lasts for 5 years. The lease calls for 6 payments
of $300,000 per year with the first payment occurring at lease
inception. The system would cost $1,050,000 to buy and would be
straight-line depreciated to a zero salvage value. The actual
salvage value is zero. The firm can borrow at 8%, and the corporate
tax rate is 34%.
What is the appropriate discount rate for valuing the
lease?
Group of answer choices
8.00%
5.28%
2.72%
12.12%
None of the rest.
Your firm is considering leasing a new computer. The lease lasts
for 9 years. The lease calls for 10 payments of $1,000 per year
with the first payment occurring immediately. The computer would
cost $7,650 to buy and would be straight-line depreciated to a zero
salvage value over 9 years. The actual salvage value is negligible
because of technological obsolescence. The firm can borrow at a
rate of 8%. The corporate tax rate is 30%.
What is the NPV of the lease relative to the purchase?
Group of answer choices
$6,610.22
None of the rest
$360.22
$339.78
-$1,039.78
Corporations are allowed to use the shelf registration method if
they:
Group of answer choices
have not defaulted on its debt in the past 3 years.
All are correct.
have not violated the 1934 Securities Act in the past 12
months.
are rated investment grade and have aggregate market stock value
of more than $150 million.
Explain, Step by step plz
Your firm is considering leasing a new robotic milling control system. The lease lasts for 5 years. The lease calls for
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