Question 6: X = 17914 The company Arab Equipment leasing want to buy equipment for X riyals, and then to lease to other companies. The estimated economic life of the equipment is 7 years, and can to be sold at the end of the period for X/1000 riyals (salvage Value). The company follows the policy of straight-line depreciation expense and require a return on investment after tax of 25%. The company pays income tax at a rate of 15%. The company is committed to providing maintenance services for all equipment leased. Maintenance cost is estimated 1500 SAR per year. 1 1 - Find the Rate of Return R = ? 2- Find the tax rate t= ? 3- Find the sum of the discount factors S = 27-1 (1+R) 4- Find the salvage value SV = ? 5- Find the cost of investment CI = ? 6- Find the depreciation D=? 7- Find the discounted salvage value DSV=? 8- Find the maintenance cost M = ? 9- Calculate the lease payment from the viewpoint of the Lessor. L = ? L CI +M (1 T )xS -TxDxS - DSV (1-7)xSx(1+R) Question 7: All results must be numeric and rounded to the nearest hundredth X = 17914 1. When you round off to the hundredth digit, you look at only the thousandth digit i.e. you focus only on the next digit. Say z=4678.4546 When you round it to the nearest hundredth digit, you get z = 4678.45 2- When you have a percent transform it into decimal number. Say T = 35% you get T = 0.35