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%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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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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