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A company can obtain an assest on lease by paying 5 equal lease rental annual, this is paid at begining of every year. The leasing company desire to return 10% on gross value of asset. Tax rate 40%. Cost of capital 9%cost of asset 761790, calculate the leasae rental payable by comapny

April 10, 2020

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A company is considering 3 methodds of attracting customers to expand its business undertaking , A, Band C. the initial outlay in each is 100000,150000, 150000 respectively. If a carried out , NPV is 125000, If B is done , NPV is 45000; if both are done , then NPV is 200000. the NPV of C is 90000. A and B does not depend on C . which of the investment should be made ...??? if the company budget is only 250000?

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Z Limited is faced woth decision to purchase or acquire machine onlease. Cost of machine is 126965, the asset can be finance on loan with intrest @15 % and loan to be paid in 5 equal installement. Tax rate @40%-, the present value of cash flow on buying option is 87528. what should be annual lease rental to be charge by leasing comapny to match the loan option

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