Question
I need help with the Seatttle Cancer Care Case. Plaese advise INPUT DATA: KEY OUTPUT: General Data: Lessee: Invoice price $3,000,000 NAL $27,824 Annual lease
I need help with the Seatttle Cancer Care Case. Plaese advise
INPUT DATA: KEY OUTPUT: General Data: Lessee: Invoice price $3,000,000 NAL $27,824 Annual lease payment $675,000 IRR 11.0% Net revenue per procedure $10,000 Per procedure lease payment $7,000 Lessor: For Lessee Only: Seattle Unleveraged lease: NPV $22,120 Maintenance contract cost $100,000 IRR 8.1% Loan interest (discount) rate 10.0% Estimated residual value $1,600,000 Leveraged lease: Residual value discount rate 13.5% NPV $58,255 Tax rate 5.0% IRR 15.0% For Lessor Only: GB Financing Per Procedure Versus Annual Lease: (Volume = procedures annually) Maintenance contract cost $100,000 Opportunity cost rate 9.0% Profit Estimated residual value $1,600,000 Per procedure lease $300,000 Residual value discount rate 13.0% Annual lease 325,000 Tax rate 30.0% Difference ($25,000) Leveraged lease inputs: Amount borrowed $1,500,000 Interest rate 8.0%
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