see photo attached

MANCOSA: MBA (GENERAL) STAGE 1 ASSESSMENT 6: FINANCIAL MANAGEMENT DUE DATE: 26 AUGUST 2019 (50) (25) 3. Some als, they excess QUESTION 1 (25) The Randolph Limited has decided to acquire a new truck. One alternative is to lease the truck on a 4-year guideline contract for a lease payment of R10,000 per year, with payments to be made at the beginning of each year. The lease would include maintenance. Alternatively, Randolph Limited could purchase the truck outrier for R4n on financing the purchase by a bank loan for the net purchase price and amortizing the loan over a 4-vear neriod at an interest rate of 10% per year. Under the borrow-to purchase arrangement, RTC would have maintain the truck at a cost of R1,000 per year, payable at year end. The truck falls into the MACRS 3. X, which is the expected market value after 4 years, when Randolph Ltd plans to the MACRS 3-year class. It has a residual value of R10,000, which is the expected market value after 4 yes estive of whether it leases or buys. Randolph Limited has a marginal tax rate of 4 replace the truck irrespective of wh (15) (10) (25) ortant 1.1 What is Randolph's Present Value cost of leasing? 12 What is Randolph's Present Value cost of owning? Should the truck be leased or purchased 1.3 The appropriate discount rate for use in the analysis is the firm's after-tax cost of debt why (10) (10) strate ormal (9)