Mathematics, 31.05.2021 14:00 wednesdayA
Engro Incorporation wants to evaluate an acquisition of an equipment worth $200,000. Its marginal tax rate is 40 percent. If purchased, the depreciation of equipment will take place at straight line method. The salvage value of the equipment is assumed to be $20,000 at the end of its useful life of 10 years. If the equipment is purchased, Engro will finance the asset through borrowing from bank at annual before tax cost of 10%. further, if Engro decides to purchase the equipment, it will incur $1000 as annual maintenance expense each year. These expenses would not be incurred if the computer is leased. If leased, Engro can have the equipment at $28000 pre-tax rate per year, which is to be paid at the beginning of each year. Company’s weighted average after tax cost of capital is 12 percent.
Compute the net advantage to leasing (8 marks)
What alternative, leasing or owning, should be chosen
Answers: 2
Mathematics, 21.06.2019 22:30
An ant travels at a constant rate of 30cm every 2 minutes.at what speed does the ant travel per minute
Answers: 2
Mathematics, 22.06.2019 03:30
The area of a square floor on a scale drawing is 64 square centimeters, and the scale drawing is 1 centimeter: 3 ft. what is the area of the actual floor? what is the ratio of the area in the drawing to the actual area? the area of the actual floor is square feet. the ratio of the area in the drawing to the actual area is 1 square centimeter: square feet.
Answers: 3
Mathematics, 22.06.2019 05:00
Acar travels 85 kilometers per hour. what is the equivalent speed in meters per hour?
Answers: 1
Engro Incorporation wants to evaluate an acquisition of an equipment worth $200,000. Its marginal ta...
Spanish, 26.05.2020 23:00
Mathematics, 26.05.2020 23:00
English, 26.05.2020 23:00
Mathematics, 26.05.2020 23:00
Biology, 26.05.2020 23:00
English, 26.05.2020 23:00
English, 26.05.2020 23:00
English, 26.05.2020 23:00
English, 26.05.2020 23:00
Mathematics, 26.05.2020 23:00
Mathematics, 26.05.2020 23:00
Geography, 26.05.2020 23:00
Arts, 26.05.2020 23:00
Mathematics, 26.05.2020 23:00