Question
TTY is planning to lease a new Boeing 737 Max from a lessor in Ireland. Following are the terms of the deal Monthly Lease Rate:
TTY
is planning to lease a new Boeing 737 Max from a lessor in Ireland. Following are the terms of the deal Monthly Lease Rate: 0.800% of price of the aircraft Price of A/C: $50M Life of lease: 12 Years
Return costs at end of lease: $5M
STL uses a discount rate of 5% evaluate its investment decisions, and is in the 15% tax bracket
Questions
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Please build a 12 year analysis which shows the cashflows of this leasing arrangement - ?
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Calculate the NPV of this structure - ?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
