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Kohers Inc. is considering a leasing arrangement to finance some manufacturing tools that it needs for the next 3 years. The tools will be obsolete and worthless after 3 years. The firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. It can borrow $4,800,000, the purchase price, at 10% and buy the tools, or it can make 3 equal end-of-year lease payments of $2,100,000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan, with interest-only paid at the end of the year. The loan principal would be repaid in year 3. The firm's tax rate is 40%. Annual maintenance costs associated with ownership would start immediately and are estimated at $240,000, but this cost would be borne by the lessor if it leases. What is the net advantage to leasing (NAL), in thousands? (Suggestion: Delete 3 zeros from dollars and work in thousands.) Assume that the capital structure is 100% debt when calculating WACC.
Efficient provision of a public good occurs at the level at which each member of society places the same value on the last unit.
Based on the above, what is the internal rate of return Mark can expect from the food truck? Carry answer to two decimal places.
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A college received a contribution to its endowment fund of $2 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?
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Please explain an aspect of technology in business and explain moral issues related to it. Your topic should be unique
The Excel file Internet Usage provides data about users of the Internet. Construct stacked bar charts that will allow you to compare any differences due to age or educational attainment and draw any conclusions that you can. Would another type of ..
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