Use the Table for the Question(s)below

question 10

Multiple Choice

Use the table for the question(s) below.
Your firm is contemplating leasing some new equipment.The cash flows of either buying or leasing the equipment are shown in the table above.
-If your firm's borrowing cost is 7% and the tax rate is 35%,what is the NPV of leasing versus borrowing?

• A)$178,937
• B)$169,070
• C)$30,930
• D)$21,063
• E)-$14,145

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Definitions:

Consumer Protection

Legal measures and policies designed to safeguard buyers of goods and services from unfair practices, fraud, and misinformation in the marketplace.

Debt Collection Agencies

Companies specialized in recovering unpaid debts on behalf of creditors.

Legislative Enactments

Laws and statutes passed by a legislative body.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.