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4- The company Arab Equipment leasing want to buy equipment for 18999$, and then to lease to other companies. The estimated economic life of the
4- The company Arab Equipment leasing want to buy equipment for 18999$, and then to lease to other companies. The estimated economic life of the equipment is 7 years, and can to be sold at the end of the period for X/1000 $ (salvage Value). The company follows the policy of straight-line depreciation expense and require a return on investment after tax of 25%. The company pays income tax at a rate of 15%. The company is committed to providing maintenance services for all equipment leased. Maintenance cost is estimated 1500 SAR per year. a- Find the Rate of Return R = ? b- Find the tax rate t = ? C- Find the sum of the discount factors S = { 1 (1+R) 1 7 t=1 d- Find the salvage value SV = = ? e- Find the cost of investment CI = ? f- Find the depreciation D = ? g. Find the discounted salvage value DSV=? h- Find the maintenance cost M = ? i- Calculate the lease payment from the viewpoint of the Lessor. L = ? 4- The company Arab Equipment leasing want to buy equipment for 18999$, and then to lease to other companies. The estimated economic life of the equipment is 7 years, and can to be sold at the end of the period for X/1000 $ (salvage Value). The company follows the policy of straight-line depreciation expense and require a return on investment after tax of 25%. The company pays income tax at a rate of 15%. The company is committed to providing maintenance services for all equipment leased. Maintenance cost is estimated 1500 SAR per year. a- Find the Rate of Return R = ? b- Find the tax rate t = ? C- Find the sum of the discount factors S = { 1 (1+R) 1 7 t=1 d- Find the salvage value SV = = ? e- Find the cost of investment CI = ? f- Find the depreciation D = ? g. Find the discounted salvage value DSV=? h- Find the maintenance cost M = ? i- Calculate the lease payment from the viewpoint of the Lessor. L =
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