Reference no: EM131089151
For questions 1&3 If you can please provide the step by step process with the formula used to arrive at the answer. It is needed for my work to be accepted. I am Having a hard time being able to show how I arrived at the answers, step by step.
1. Your firm is considering leasing a radiographic x-ray machine. The lease lasts for three years. The lease calls for four payments of $25,000 per year with the first payment occurring immediately. The computer would cost $140,000 to buy and would be straight-line depreciated to a zero salvage value over three years. The actual salvage value is negligible. The firm can borrow at a rate of 12%. The corporate tax rate is 40%.
What is the after-tax cash flow from leasing relative to the after-tax cash flow from purchasing in year 0?
2. Discuss the stages of venture capital financing and define each in detail.
3. Your firm is considering leasing a new radiographic device. The lease lasts three years. The lease calls for four payments of $25,000 per year with the first payment occurring immediately. The computer would cost $140,000 to buy and would be straight line depreciated to a zero salvage value over three years. The actual salvage is negligible because of technological obsolesce . The firm can borrow at a rate of %12. The corporate tax rate is %40.
A. What is the NPV of the lease relative to the purchase?
B. What would the after-tax cash flow in year three be if the asset had a residual value of $1,000 (ignoring any possible risk differences)?
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Equation of the constant growth model
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Negative and positive balance of trade
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List different methods used in a needs assessment
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What is the npv of the lease
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Stages of venture capital financing
: What is the after-tax cash flow from leasing relative to the after-tax cash flow from purchasing in year 0? Discuss the stages of venture capital financing and define each in detail.
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Effective rate using compound interest rate method
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Describe how developed survey and interviewed participants
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After-tax cash flow
: What would the after-tax cash flow in year three be if the asset had a residual value of $1,000 (ignoring any possible risk differences)?
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Problem regarding the interest payments
: You want to know how many more interest payments you would be receiving, but the party selling the bond cannot remember. Can you determine how many more interest payments you would receive if you purchased this bond?
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