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Wild Pet, Inc, a Pets's food and supplement firm, is considering the acquisition of a new Cats Croquette processing machine Wild Pet can purchase the

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Wild Pet, Inc, a Pets's food and supplement firm, is considering the acquisition of a new "Cats Croquette processing machine Wild Pet can purchase the machine through the use of its normal financing mix (35% debt and 65% common equity) or lease it Pertinent details follow Acquisition price of the machine $45.000 Useful life 4 years Salvage value $5,000 Depreciation method Straight-line Annual cash savings before tax and depreciation from the machine $16.000 Rate of interest on a four-year installment loan 12% Marginal tax rate 40% Annual rentals (four-year lease) $13,000 Annual operating expenses included in the lease $1.750 Cost of capital 14 Calculate the NAL Select one a Different answer 0 $2,008 C($ 2010) d. ($ 2,008) e $ 2009 1 ($ 2,009) 6:45 PM

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