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:

Self-Confident

The feeling of trust in one's abilities, qualities, and judgement.

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A condition of limited knowledge where it is impossible to exactly describe an existing state, future outcome, or more than one possible outcome.

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An improvement in performance produced by the mere presence of others, often because of increased arousal and motivation to perform well.

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The act of copying or displaying emotions that are not genuinely felt, often to fit into a social context or as a response to social cues.