If the after-tax present value of buying equipment and using it for 3 years is $231, calculate the break- even after-tax yearly lease payment (3 payments) using a 10% real discount rate (Assume that lease payments are made at the beginning of the year and zero inflation.) Answer: Give your reasons 1 A B I F % 07 Suppose company has $17 in taxable income after considering $7 of tax privileges (so, company's tax shield = $7). If alternative minimum tax (AMT) is 20%, calculate the minimum tax amount that company should pay. (Show your steps in the text box below. Do not use any symbols in the answer box, just write the number) Answer: Give your reasons 7 A- B I FE !!!! E EI e 22 Company spends $100 to produce goods today (period 0). It sells these goods after one year (period 1) for $123, but its customers do not pay their bills until the end of the following year (period 2). Calculate NPV if discount rate is 10% Answer: Give your reasons 1 " I FF !!! III THI % 93 Your firm expects to receive a cash flow in two years of $1216 in nominal terms. If the real rate of interest is 2% and the inflation rate is 5%, what is the real cash flow for year 2? Answer: Give your reasons ho 7 A BI FI EEE