Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
Your firm is a lessor that is planning to buy some new equipment and offer it to another firm through a lease arrangement.You have calculated the above cash flows for a potential lease you might offer.
-If your firm's borrowing cost is 3% and the tax rate is 45%,what is the NPV of buying and leasing?

• A)$5,422
• B)$14,694
• C)$11,620
• D)$15,069
• E)$20,479

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Definitions:

Quick Response

A business strategy aimed at decreasing lead times and enhancing flexibility in operations to meet customer demand efficiently.

Manufacturer Profit

The financial gain a manufacturing company secures from its operations after deducting costs associated with production and distribution.

Short Term

A period of time that is immediate or not far in the future, usually less than a year, often used in reference to planning or financial strategies.

Product Availability

the extent to which a product is obtainable in the desired quantities at the right time and place for customers.