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solve problem please ! Discount Ratw is not given! pV 9% 1- Part C: Compute the NPV Costs for a NEW project approved by Senior
solve problem please !
Discount Ratw is not given!
pV 9%
1- Part C: Compute the NPV Costs for a NEW project approved by Senior management and the Board of Directors, should the corporation lease or purchase a $ 500K dollar machine. What are you choosing? Lease? Own/Purchase? 15 points Year 1 Year 2 Year 3 Cost of Owning Year Year 4 Net Purchase $500,000.00 $12,000.00 -$12,000.00 -$12,000.00 - $12,000.00 $12,000.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $16,000.00 $25,600.00 $15,200.00 Maintenance Tax Saving Dep Tax Saving Residual Value Residual V Tax Net Cashflow PV @?? $9,600.00 $20,000.00 $5,600.00 Cost of Leasing $45,500.00 $22,800.00 $45,500.00 $45,500.00 $45,500.00 $22,800.00 $22,800.00 $22,800.00 Lease Payment Tax Savings Net Cashflow PV @ ?? Lease Owning Leasing Net Comparison Step by Step Solution
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