What is the nal of the lease

Assignment Help Business Management
Reference no: EM132955687

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $5,400,000, and it would be depreciated straight-line to zero over five years. Because of radiation contamination, it actually will be completely valueless in five years. You can lease it for $1,340,000 per year for five years. Assume that the tax rate is 24 percent. You can borrow at 8 percent before taxes.

What is the NAL of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132955687

Questions Cloud

Analyse the impact of accepting catville order on jr sdn bhd : Analyse the impact of accepting Catville's order on JR Sdn Bhd's profit. For the coming period, the company is planning to fully utilise the available capacity.
What is the npv of project : Dog Up! Franks is looking at a new sausage system with an installed cost of $505,000. This cost will be depreciated straight-line to zero over the project's ziv
Calculate the npv of project : Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $425,000 is estimated to result in
Provide brief description of primary legal forms of business : Explain how forms of business and related governance decisions would potentially impact strategic management choices (or vice versa)
What is the nal of the lease : What is the NAL of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What one-time investment made today : What one-time investment made today, earning 12% annual interest, will be worth $ 6,000 at the end of 6 years?
Find the required increase in annual cash inflows in order : Find the required increase in annual cash inflows in order to have the time adjusted rate of return approximately equal to the cost of capital
Calculate the present value of a perpetuity : Question. Can we calculate the present value of a perpetuity that last forever? If so, what is the formula for that and please provide an example.
Calculate the breakeven point in terms of sales dollars : Since ?Peter's offers thousands of different? products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units.

Reviews

Write a Review

Business Management Questions & Answers

  Making spending decisions

Why might the public ignore future tax liabilities when making spending decisions?

  Global strategies and global logistics and distribution

GLOBAL MARKETING MANAGEMENT-Global Strategies. Global Logistics and Distribution. Politics, Law and Research

  Type of training and one assessment

In column 3, identify one type of training and one assessment tool for each PA that could be used to identify training success.

  Discuss what details can be included in a project scope

Discuss what details can be included in a project scope, and what items should not be included.

  Given a company new product strategy

Given a company's new product strategy, analyze the strengths and weaknesses of different methods of concept generation.

  Facilitators and inhibitors of its ability to grow

Will it be possible to sustain Sun without making fundamental changes in its design? What would you foresee to be the main facilitators and inhibitors of its ability to grow and be sustained?

  Synthesize the change based on kotter

Analyze the change that was implemented by Daniel Oliveira. Synthesize the change based on Kotter's eight (8) steps for leading change. Determine if Oliveira followed the Kotter model.

  What does generally accepted accounting principles mean

What does Generally Accepted Accounting Principles (GAAP) mean? In the process of setting accounting standards, the Financial Accounting Standards Board

  Define the six important employee behaviors

Define the six important employee behaviors. Is one more important than the other, is so which one?

  Understand the concept of sql

List  all the student Id and teacher Id where GPA is 3 or more than 3. List all the students of the teacher whose name is 'John Eric'. List student Id, name, and address of all the students whose date of birth is 1983. List all the Course Code  where..

  Dilemma of trust existing between agents and constituents

Explain and evaluate the dilemma of trust existing between agents and constituents. How effective are the use of agents in a negotiation

  Define asset management

Define "asset management". Define "inventory management" the difference between asset management and inventory management

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd