Your corporation is considering purchasing equipment costing $67,000 which it expects to sell at the...
70.2K
Verified Solution
Link Copied!
Question
Finance
Your corporation is considering purchasing equipment costing $67,000 which it expects to sell at the end of Year 4 for $21,500. The firm uses MACRS depreciation, with rates of 33.33 percent, 44.44 percent, 14.82 percent, and 741 percent over Years 1 to 4, respectively. The equipment can be leased for $17,700 a year for four years. The firm can borrow at 6.5 percent and has a tax rate of 25 percent. What is the incremental annual cash flow for Year 4 if the company decides to lease the equipment rather than purchase it? A) -$32,930 B) -$30,641 OC) -$33,701 D) -$50,430 E) -$42.730
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.