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1) if the Hiber machin shop company the displacement rate is 6% and precise break-even adjusted discount rate is 6.33, then corresponds to a borrowing rate is: a. 10.55% B. 9.4% C. 10%

1) if the Hiber machin shop company the displacement rate is 6% and precise break-even adjusted discount rate is 6.33, then corresponds to a borrowing rate is: a. 10.55% B. 9.4% C. 10%

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 15P: Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes...
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1) if the Hiber machin shop company the displacement rate is 6% and precise break-even adjusted discount rate is 6.33, then corresponds to a borrowing rate is: a. 10.55% B. 9.4% C. 10% Q2: If the Dept displacement rate 6% and cost of borrowing machine is 10%, and the adjusted discount rate = 7.6% .So what is the Marginal tax rate ? write the formula. Generalization of lease model used for which firm? Non Tax paying position firm but expect to resume paying taxes at a specific future date a) Non Tax paying position firm b) TAX paying position firm C) Tax paying position firm and expect to stop paying in near future Q4: If purchasing cost is $68,000 and no tax benefits are expected and not paying taxe now. What is the lease value if lease payment for five years $ 12,500 and PV pf lease payment at 10%, & lost residual value before tax $5,000 is for 5 year residula at 10% borrowing rate in step 10 use tax marginal -0.4
Transcribed Image Text:1) if the Hiber machin shop company the displacement rate is 6% and precise break-even adjusted discount rate is 6.33, then corresponds to a borrowing rate is: a. 10.55% B. 9.4% C. 10% Q2: If the Dept displacement rate 6% and cost of borrowing machine is 10%, and the adjusted discount rate = 7.6% .So what is the Marginal tax rate ? write the formula. Generalization of lease model used for which firm? Non Tax paying position firm but expect to resume paying taxes at a specific future date a) Non Tax paying position firm b) TAX paying position firm C) Tax paying position firm and expect to stop paying in near future Q4: If purchasing cost is $68,000 and no tax benefits are expected and not paying taxe now. What is the lease value if lease payment for five years $ 12,500 and PV pf lease payment at 10%, & lost residual value before tax $5,000 is for 5 year residula at 10% borrowing rate in step 10 use tax marginal -0.4
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