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Please, complete the exercise. Thank you in advance. The company would like to buy a machine for 8 mil. USD. Machine would be depreciated for
Please, complete the exercise. Thank you in advance.
The company would like to buy a machine for 8 mil. USD. Machine would be depreciated for 3 years using straight line method. Company has following options:
Loan: maturity 3 years, interest 6 % p.a., equal annuity payment Leasing: leasing coefficient 1.2; advanced payment 35 %; maturity 3 years; annual payment Corporate tax rate is 20 %.
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