### What is the nal of the lease

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##### Reference no: EM13272167

Big Sky Mining Company must install \$1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: The machinery falls into the MACRS 3-year class. Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance. The firm's tax rate is 40%. The loan would have an interest rate of 14%. (Suppose that only interest payments are made at the end of each year and the whole loan will be paid back at the end of year 4.) The lease terms call for \$400,000 payments at the end of each of the next 4 years. Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of \$200,000 at the end of the 4th year.

MACRS Year Allowance

Factor

1 0.3333
2 0.4445
3 0.1481
4 0.0741

What is the NAL of the lease? Round your answer to the nearest cent.

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 Obtain the position of the final image : An object is placed 6.00cm to the left of a converging lens of focal length 8.00 cm. obtain the position of the final image What other factors mayinfluence the value of a bond : Be sure toshow how you arrived at your answer. What other factors mayinfluence the value of a bond? Define what is the mass of a block of iron : The density of iron is 7.87 . What is the mass of a 4.00 4.00 1.00 block of iron? Express your answer to three significant figures and include the appropriate units. Calculate the pressure : Calculate the pressure, in atmospheres, of 3.94 mol CO(g) in a 4.25 L tank at 31 degrees C. What is the nal of the lease : Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of \$200,000 at the end of the 4th year. How much work must be done on the gas : You are designing a process to store pressurized argon gas (a monatomic gas). If you pressurize the gas at a constant temperature, how much work must be done on the gas Explain the enthalpy of formation is carbon monoxide : The enthalpy of formation is carbon monoxide is difficult to determine experimentally because it is difficult to burn carbon without producing carbon dioxide as well as carbon monoxide What is the npv of the lockbox project : The daily interest rate is 0.016 percent. What is the NPV of the lockbox project if the bank charges a fee of \$210 per day? What was swan depreciation and amortization expense : If the firm's EBITDA was \$5,000 and its fixed costs were equal to \$1,750, then what was Swan's depreciation and amortization expense during the same period?

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