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Acme has branched out to rentals of office furniture to start - up companies. Consider a $ 3 , 3 0 0 desk. Desks last
Acme has branched out to rentals of office furniture to startup companies. Consider a $ desk. Desks last for six years and can be depreciated immediately. Assume that lease rates for old and new desks are the same and that Acmes pretax administrative costs are $ per desk at the beginning of each year. The cost of capital is and the tax rate is Lease payments are made in advance, that is at the start of each year. The inflation rate is zero. Suppose a bluechip company requests a sixyear financial lease for a $ desk. The company has just issued fiveyear notes at an interest rate of per year. What is the breakeven rate in this case? Do not round intermediate calculations. Round your answer to decimal places.
Acme has branched out to rentals of office furniture to startup companies. Consider a $ desk. Desks last for six years and can be depreciated immediately. Assume that lease rates for old and new desks are the same and that Acmes pretax administrative costs are $ per desk at the beginning of each year. The cost of capital is and the tax rate is Lease payments are made in advance, that is at the start of each year. The inflation rate is zero. Suppose a bluechip company requests a sixyear financial lease for a $ desk. The company has just issued fiveyear notes at an interest rate of per year.
What is the breakeven rate in this case? Do not round intermediate calculations. Round your answer to decimal places.
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