Assume that Kaibab Logging Company's tax rate is 40%. A logging machine it needs costs $200 to buy. This logging equipment lasts for two years and is depreciated at $100 per year. For simplicity, assume away other factors such as maintenance costs, salvage value, etc. Kaibab Logging faces the following options: - If the Kaibab Logging leases this asset for 2 years, the payment is $120 at the beginning of each year. - If the Kaibab Logging borrows a loan and buys the asset, the bank charges 10% interest on the loan. Kaibab Logging Company can also use its internal funds to buy the equipment. Remarks: if your answer is "(B) $100 ", then please type in "B". Do not type in $100, or 100 , or (B), or (B)$100, Just type in the letter, otherwise BbLearn will not recognize your answer. 1. What's Kaibab Logging Company's cost of leasing? (find the dollar amount) Answer: (A) $139.92 (B) $132.00 (C) $128.78 (D) None of the rest is correct 2. What's Kaibab Logging Company's cost of owning? (find the dollar amount) Answer: (A) $132.00 (B) $145.76 (C) $126.66 (D) None of the rest is correct 3. What's Kaibab Logging Company's NAL? Answer: (A) $15.54 (B) $26.23 (C) $9.07 (D) $13.26 (E) None of the rest is correct Assume that Kaibab Logging Company's tax rate is 40%. A logging machine it needs costs $200 to buy. This logging equipment lasts for two years and is depreciated at $100 per year. For simplicity, assume away other factors such as maintenance costs, salvage value, etc. Kaibab Logging faces the following options: - If the Kaibab Logging leases this asset for 2 years, the payment is $120 at the beginning of each year. - If the Kaibab Logging borrows a loan and buys the asset, the bank charges 10% interest on the loan. Kaibab Logging Company can also use its internal funds to buy the equipment. Remarks: if your answer is "(B) $100 ", then please type in "B". Do not type in $100, or 100 , or (B), or (B)$100, Just type in the letter, otherwise BbLearn will not recognize your answer. 1. What's Kaibab Logging Company's cost of leasing? (find the dollar amount) Answer: (A) $139.92 (B) $132.00 (C) $128.78 (D) None of the rest is correct 2. What's Kaibab Logging Company's cost of owning? (find the dollar amount) Answer: (A) $132.00 (B) $145.76 (C) $126.66 (D) None of the rest is correct 3. What's Kaibab Logging Company's NAL? Answer: (A) $15.54 (B) $26.23 (C) $9.07 (D) $13.26 (E) None of the rest is correct