A lessor made an investment in an asset with net cost of investment of ₱800,000 and intends to lease it out for a 5-year term. He determined that he will incur an annual cost of ₱250,000. Tax rate is 25%. Annual depreciation is ₱160,000. Cost of capital is 15%. The breakeven lease per year would be? ₱ 494,450 ₱ 471,503 512,356 ₱ 323,886 ₱ 361,417 ₱ 514,876

A lessor made an investment in an asset with net cost of investment of ₱800,000 and intends to lease it out for a 5-year term. He determined that he will incur an annual cost of ₱250,000. Tax rate is 25%. Annual depreciation is ₱160,000. Cost of capital is 15%. The breakeven lease per year would be? ₱ 494,450 ₱ 471,503 512,356 ₱ 323,886 ₱ 361,417 ₱ 514,876

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 1P

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