What is the break even amount between buying and leasing given: Interest rate of 12% Tax rate of 21% After Tax interest rate: ___? PV of owning =$280,000.00 annuity due =1 Payment would be: ____? What is the value before taxes:
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- Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, calculate the TAX SHIELD. Expected interest year 1 = 50; year 2 = 35; year 3 = 20; year 4 = 10; 5 = 0 Group of answer choices 101.36 158.33 82.85 46.37Please Provide Answer with calculationWant Correct Answer with calculation and explanation
- Based on the following data, would you recommend buying or renting? Rental Costs Annual rent $ 7,480 Insurance $ 155 Security deposit $ 700 Buying Costs Annual mortgage payments $ 10,000 ($9,625 is interest) Property taxes $ 1,820 Down payment and closing costs $ 4,700 Growth in equity $375 Insurance and maintenance $ 1, 150 Estimated annual appreciation $ 1,800 Assume an after-tax savings interest rate of 8 percent and a tax rate of 30 percent. Assume this individual has other tax deductions that exceed the standard deduction amount.Need answerBaghiben
- Using a financial calculator, You can buy property today for $2.1 million and sell it in 6 years for $3.1 million. (You earn no rental income on the property.) If the interest rate is 11%, what is the present value of the sales price?Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $650 today is equivalent to having what amount in one year? It is equivalent to $____. (Round to the nearest cent.)You can buy property today for $3.9 million and sell it in 5 years for $4.9 million. (you have no rental income on the property). 1. If the interest rate is 8% what is the present value of the sales price? 2. Is the property investment attractive to you? 3. What is the present value of the future cash flows if you are could earn $290000 per year rent on the property? The rent is paid at the end of each year. 4. Is the property investment attractive to you now?