A machine with a four-year useful life could be purchased for 50,000. It would have zero residual
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A machine with a four-year useful life could be purchased for £50,000. It would have zero residual value at the end of the four years. Alternatively, the machine could be rented at £15,180 per annum for four years. Assuming a tax rate of 30 per cent and that tax relief is obtained in the same period as the payments, what is the implicit interest rate in the lease?
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To calculate the implicit interest rate in the lease we can use the concept of Net Present Value NPV ...View the full answer
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Related Book For 
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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