Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Question: Aurian rents trucks for his hauling service and pays $17 per hour for a truck. He rents the trucks on an asneeded basis about twice per week. If his tax rate is 8%, then what is his after tax lease payment?

Aurian rents trucks for his hauling service and pays $17 per hour for a truck. He rents the trucks on an asneeded basis about twice per week. His daily cost of capital is 0.05% and he rents a truck today for 2 hours, two days from now for 4 hours, and 4 days from now for 8 hours. If his tax rate is 8%, then what is the present value of his after tax lease payments?

You can buy a steam press for your business at $5,000 or lease one for 6 months at $1,200 per month, with the first payment due today. The cost of capital is 8% per month and the tax rate is 15%. Should you lease or buy? What is the NAL?

Imagine that you are investing in Syria. Provide specific examples of events that might affect your exposure to exchange rate risk and political risk.

You want to buy industrial ethanol and you have $125USD to spend. The domestic price is $0.50USD per liter. You can also buy ethanol with free shipping from Canada and Mexico. The price in Canada is $0.54CD and the price in Mexico is 10 pesos per liter. The spot US-CA exchange rate is $0.90USD and the CA-MX exchange rate is 16?. From what country should you buy your ethanol and how much can you afford to buy?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92779965

Have any Question?


Related Questions in Basic Finance

Estimate cost of capital for a 10-year project with a

Estimate cost of capital for a 10-year project with a market risk B=1.2. Assume expected market return is 10%.

Question - super credit corporation has an allowance

Question - Super credit Corporation has an allowance account with a credit balance of $2,000. Prepare the entry to recognize bad debt expense if: (a) Bad debts are estimated at 4% of credit sales of $80,000. (b) Bad debt ...

Calculating irra firm evaluates all of its projects by

Calculating IRR A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Year Cash Flow 0 -26,000 1 11,000 2 14,000 3 10,000 Calcu ...

A stock price is currently 20 and at the end of 3 months it

A stock price is currently $20, and at the end of 3 months it will increase or decrease by 10%. The risk free rate is 5% per year (continuous compounding). Assume that ST is the price at the end of 3 months. what is the ...

Tick the factors that financial manager should be included

Tick the factors that financial manager should be included when computing the incremental free cash flows of an investment decision. Sunk costs Opportunity costs Project externalities Financing costs

The firm has bonds that pay a 5 coupon rate mature in 10

The firm has bonds that pay a 5% coupon rate, mature in 10 years and sell for $975. The preferred stock is selling for $35 and pays a $3.00 dividend. The common stock is selling for $20, just paid a $2.25 dividend and is ...

What is the 5 var in terms of holding period return for a

What is the 5% VaR (in terms of holding period return) for a portfolio with normally distributed returns, a mean return of 20%, and a standard deviation of returns of 40%?

You deposit 286 dollars in an account every year for 4

You deposit 286 dollars in an account every year for 4 years that earns 4 percent annual interest. What is the present value of your deposits today (the present value of the annuity at time 0)? (your first deposit will b ...

How may the royal commission inquiring into the activities

How may the Royal Commission inquiring into the activities of financial institutions in Australia affect systematic (market) risk and unsystematic (firm-specific) risk? Explain how items of news reported from the Royal C ...

Soma needs loan from para soma needs 14400 and para agreed

Soma needs loan from Para. Soma needs $14,400 and Para agreed to lend the $14,400 if Soma makes one payment to Para in the amount of $18,000, to be paid four months from now. What is the EAR on this loan?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As