Beam ltd Ltd is deliberating on whether to lease or buy new equipment. The equipment...
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Finance
Beam ltd Ltd is deliberating on whether to lease or buy new equipment. The equipment costs R200 000. The lease period is for 5 years and wear and tear on equipment over 3 years. The applicable after tax interest rate is 10%. Assume the Corporate tax rate is applicable and annual lease payment is R15 000
Question 1.9 The after tax lease payments can be calculated as:
A R 10 200
B R 10 300
C R 10 500
D R 10 800
Question 1.10 Calculate the annual wear and tear tax shield.
A R 19 667
B R 18 667
C R 17 667
D R 16 667
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