What is the NPV of leasing versus buying?Enter a response then click Submit below$0Submit Buy VanLease VanBuy/Lease TermDepreciationTermTax RateInterest RateAfter-TaxInterest RateBuyYearPaymentDepreciationTax DeductionNet PaymentLeaseYearPaymentTax DeductionNet Payment$31,648$14,065 Per Year3 Years110 Years21.0%7.8%6.2%$12,236$3,165$665$11,5711$14,065$2,954$11,1112$12,236$3,165$665$11,5712$14,065$2,954$11,1113$12,236$3,165$665$11,5713$14,065$2,954$11,111

NPV of leasing is the difference between present value of buying and present value of leasing and it…

Answered: Buy Van Lease Van Buy/Lease Term…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Internal Rate of Return Method The internal rate of return method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $110,610 and annual net cash flows of $18,000 for each of the 10 years of its useful life. Present Value of an Annuity of $1 at Compound Interest 6% Year 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.626 1.528 1.833 1.736 1.690 2.402 2.283 2.673 2.487 2.106 3.170 3.465 3.037 2.855 2.589 2.991 4.212 3.791 3.605 3.352 4.111 4.917 4.355 3.784 3.326 5.582 4.868 4.564 4.160 3.605 4.487 3.837 6.210 5.335 4.968 6.802 5.759 5.328 4.772 4.031 5.650 10 7.360 6.145 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round ecimal places. your answer to three
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5 1/2 interest rate for 30 years is 5.67789
fond the periodic deposit and intrest earned. C Future compounding time periodic interest in Value r frequency deposit (m) earned years $ $ $25,000 7.9% annually 11 $ $250,000 3% semiannually 13 $ $ $ $125,000 2.2% quarterly 15 $ $ $150,000 6.2% monthly 7 $ $ $125,000 4% weekly 15
a. b. C. Annuity Annual Payment Rate $ 124,000 124,000 124,000 Interest Compounded 8% Annually 10% Annually 12% Annually Period Invested 6 years 6 years 6 years Present Value of Annuity
Determine the value of the perpetuity annual amount $20,000 discount rate 8%
What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%, compounded semiannually? $7,205 $9,606 $9,702 $9,030 $10,736
ences Rental Costs. Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $ 7,520 152 1,050 Rental cost Buying cost Total Cost $ 10,600 ($ 9,606 is interest) 2,170 Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. 1,920 4,500 994 3,000
Using the following partial table of present value of $1 at compound interest, the present value of $96,666 to be received 3 years hence with earnings at the rate of 6% a year is Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 A..$61,479.58 b.$76,559.47 c.$66,022.88 d.$81,199.44 please give me answer
6 % interest rate for 15 years is 8.43857
Loan Amount Loan Term Fully Amortized Interest Rate Origination Fee Prepayment Penalty 7.5% 8.1% 9.6% Old Loan 4,000,000 30 years Yes 7% 3% 7% 10.1% New Loan What is the internal rate of return of refinancing the old loan at the end of Year 10? (choose the closest answer) 6.8% 20 years Yes 5.5% 4% 3%
What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple Choice O O O O $7,819.20 $7,621.01 $3,885.90 $4,905.86 $3,899.12

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Buy Van Lease Van Buy/Lease Term Depreciation Term Tax Rate Interest Rate $31,648 $14,065 Per Year 3 Years 10 Years 21.0% 7.8%