Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 305 Weeks Ago, 4 Days Ago
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Business & Finance Posted 12 May 2018 My Price 3.00

wide-area computer network

Your company wants to purchase a new network file server for its wide-area computer network. The server costs Br. 75,000. It will be completely obsolete in three years. Your options are to borrow the money at 10% or to lease the machine. If you lease, the payments will be Br. 27,000 per year, payable at the end of each of the next three years. If you buy the server, you can depreciate it straight–line to zero over three years. The tax rate is 34%. Should you lease or buy?

 

8. In the previous question, what is the NPV of the lease to the lessor? At what lease payment will the lessee and the lessor both break even?

 

 

Answers

(5)
Status NEW Posted 12 May 2018 08:05 PM My Price 3.00

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