Question
Bavarian Brew wants to lease a new bottling machine. The company obtains a 10-year lease reguiring annual payments of $12 000 at the beginning of
Bavarian Brew wants to lease a new bottling machine. The company obtains a 10-year lease reguiring annual payments of $12 000 at the beginning of the year The company is expected to exercse its eption to parchae he machine at the termination of the lease for $100 000 at the end of year 10. The cormpany is in the 35% tax brackef. What is the net present value of the leasing the new bottling machine? Assume that the company's cd of dete 7%. Question 2f 2 O $57,722.15 O $61,734.15 O $66,790.15 O $70,777.15 Moving to the next question prevents changes to this answer. Question 2 of 21 080 acer A. R E Scr Lk F9 F6 1 Barkspace & %23 4 E H
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