Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your company "Digitup Ltd" needs a new earth moving machine which it can buy for USD150,000. The economic life of the machine is 8 years. It can lease the machine for 8 years, with lease payments due at the start of each year. Your cost of borrowing to buy the digger is 12% and your tax rate is 26%. Your maintenance and insurance costs are estimated to be $18,000 per annum.
The local Caterpillar agent can buy the digger from CAT for $80,000 and deprecate this over 7 years on a straight line basis. Its cost of borrowing is 7% with an overall tax rate of 32%. The agent will incur maintenance and insurance costs of $10,000 per annum.
What is the net tax adjusted annual cost of borrowing and maintenance incurred by Digitup if it borrows to buy the machine?
If the local CAT leasing company wishes to make a 10% mar- up on the before tax break-even leasing costs what will it charge Digitup to lease the digger? What would you advise the company to do and why?
Show all your calculations.
Attachment:- Assignment File.rar
There is only one question to do, and the slides regarding leasing which we have in class are attached. Please tell writer to work it perfectly, as it has a few sub-points. Please tell writer to take a look at slides which i attached and to properly do the work. Show all your calculations.
This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).
Explain the short and the long-run effects on real output, price, and unemployment
Examine the needs for measuring assets at fair value in accounting standards
Financial analysis report driven by rigorous ratio analysis
Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.
Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.
Write paper on financial analysis and business analysis
Presence of the taxes increase or decrease the value of the firm
What is the value per share of the company's stock
Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose
Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.
Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd